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Welspun Corporation, which has business interest in steel pipe manufacturing, has reported five-fold increase in March quarter consolidated net profit at ₹69 crore (₹13 crore) on the back of strong growth in sales and better realisations.
Income increased 10 per cent to ₹2,172 crore (₹1,976 crore) boosted by an other income of ₹103 crore (₹12 crore).
The company has recommended a dividend of 50 paise per equity share.
Pipe production was up at 3.29 lakh tonnes against 2.79 lakh tonnes, while pipe sales rose 3.39 lakh tonnes (2.70 lakh tonnes). However, coil and plates were down at 41,000 tonnes against 75,000 tonnes registered in the March quarter last year.
The consolidated earnings before interest, tax, depreciation and amortisation was up 46 per cent at ₹307 crore. The company’s gross debt was down at ₹1,843 crore (₹2,644 crore).
BK Goenka, Chairman, Welspun Group, said the quarter under review was driven by strong volumes leading to improvement in profitability.
Though the company is starting the new fiscal with a moderate order book, strong demand in domestic market coupled with favourable policy measures taken by the Government presents a positive outlook for the year, he said.
The company’s scrip was up 7 per cent at ₹88 on Monday.
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