Welspun Corp shares experienced a decline despite the company reporting a significant surge in its consolidated net profit for the third quarter of fiscal year 2025. While the company’s profit more than doubled, a drop in total income appears to have weighed on investor sentiment
This compares to a net profit of Rs 293.70 crore in the same period of the previous fiscal year, as per the company’s exchange filing.
However, its total income for the quarter dropped to Rs 3,656.57 crore, down from Rs 4,758.17 crore a year ago.
The company reduced its expenses to Rs 3,351.36 crore, compared to Rs 4,438.79 crore in the prior year.
Welspun Corp’s order book reached Rs 15,000 crore by December. The company also highlighted increased demand for ductile iron (DI) pipes, particularly following the Union Budget’s allocation of Rs 67,000 crore to the Jal Jeevan Mission, with an extension of the mission until 2028.
In the US, market conditions have improved, driven by the new administration’s focus on deregulating the Oil & Gas sector. Welspun Corp plans to complete its Rs 840 crore high-frequency induction welding (HFIW) pipe manufacturing facility in the US by March 2026.
In Saudi Arabia, the company is working on a Rs 1,660 crore DI pipes and LSAW plant, expected to be finished by next April. The company anticipates growing demand for Line pipes in Saudi Arabia, driven by population growth and increased infrastructure development, which will boost the need for water distribution systems.
Welspun Corp is one of the largest manufacturers of large-diameter pipes globally, with operations spanning six continents and 50 countries.
Shares of the company rose 22.95% and outperformed its sector by 5.33% in the past year. Meanwhile, shares of the company have offered 284.87% returns in the last three years. According to Trendlyne, Welspun Corp has better 1-year returns than the sector, Sensex, Nifty50, and industry.
Analyst Estimates
Analysts tracked by Bloomberg had estimated revenue at Rs 3,236 crore and net profit at Rs 232 crore. The company’s results surpassed these estimates, with a reported profit of Rs 674.7 crore.