The company posted a consolidated net profit of 3.85 billion rupees ($46.24 million) in the July-September period, as opposed to a loss of 565.9 million rupees in the same period last year. This positive change was attributed to strong demand in the main steel segment.
Welspun, which operates in the United States and Saudi Arabia, experienced a significant increase in its revenue from operations, primarily driven by its core steel products, more than doubling to 40.59 billion rupees. However, expenses also increased by 73% on an annual basis due to the 41% increase in basic raw material costs.
Analysts had previously noted the strong steel demand triggered by construction and infrastructure-related projects in the September quarter. India had imposed anti-dumping duty on steel wheels from China in September to encourage local production and stabilize prices, in response to a surge in steel imports from China earlier in the year.
Welspun's shares closed 1.03% higher at 457 rupees ($5.49) before the results were announced, giving a total gain of 90.9% for the year.
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