Welspun Subsidiary EPIC Secures Rs 3,670 Crore Deal with Aramco

By siliconindia  |  Monday, 03 June 2024, 05:02:06 PM IST

Welspun Subsidiary EPIC Secures Rs 3,670 Crore Deal with Aramco
Welspun Corp Ltd's subsidiary EPIC (East Pipes Integrated Company for Industry) has finalized a series of agreements valued at over Rs 3,670 crore with Aramco, Saudi Arabia's oil giant, for the supply of steel pipes, according to a statement filed by Welspun.
"We are pleased to inform you that our associate company East Pipes Integrated Company for Industry (EPIC), Saudi Arabia’s leading manufacturer of HSAW (Helical Submerged Arc Welded) Pipes, today announced Multi Contracts sign off with Saudi Arabian Oil Co. (Aramco) with value exceeding SAR 1.65 billion (approx. Rs 3,670 crores) inclusive of value added tax for manufacturing and supply of steel pipes", Welspun states. 
Following the announcement of multiple contracts with Aramco, the shares of Welspun experienced a significant surge, reaching as high as 6.2% to Rs 556.15 per share on the BSE today. The contracts, which extend over 19 months, are expected to have financial effects from the fourth quarter of FY 2024-25 to the final quarter of FY 2025-26, according to a statement released by Welspun in an exchange filing. "The financial impact of the contracts will be reflected from 4th Quarter of financial year 2024/2025 to 4th Quarter of financial year 2025/ 2026", Welspun adds. 
Welspun Corp Ltd witnessed a remarkable 20% rise in its consolidated net profit, reaching Rs 287.28 crore in the March quarter of FY24, driven by heightened income levels. According to the company's filing with the exchange, this represents a substantial increase from the Rs 240.08 crore net profit reported in the same period last year.
Total income for Q4FY24 climbed to Rs 4,543.70 crore, up from Rs 4,132.38 crore in Q4FY23. Meanwhile, expenses stood at Rs 4,292.37 crore in FY24's last quarter compared to Rs 3,835.55 crore a year earlier. The company's board also proposed a dividend of Rs 5 per share, affirming its financial strength and performance. "Recommended an equity dividend at the rate of 100 % (i.e. Rs 5/- per share) on 261,666,895 Equity Shares of Rs 5/- each fully paid-up, aggregating to Rs 1,308,33,475", the company states.
Welspun Corp anticipates a revenue of Rs 17,000 crore for the upcoming financial year, indicating a 3.3% decrease from the previous fiscal year's Rs 17,582 crore. Likewise, the company expects a decline in EBITDA to Rs 1,700 crore, down from Rs 1,804 crore in FY24. However, Welspun aims to sustain its return on capital employed (RoCE) at a consistent 20% for FY2025, reflecting its performance in FY24.

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