Welspun Corp (WCL), the flagship company of the $3.5 billion Welspun Group, today reported a 18.27% decline in net profit at Rs 145.3 crore for the quarter ended September 30, compared to the same period last year.
The leading pipe-making company's net profit stood at Rs 177.8 crore in the corresponding quarter in FY11, a statement issued here said.
The performance in Q2 FY12 was adversely impacted by foreign exchange provision of Rs 45.84 crore and provision of Rs 64.94 crore mainly related to amicable settlement with customers, it said.
However, WCL's sales went up by 10% to Rs 2,034.5 crore compared with Rs 1,852.4 crore in the corresponding quarter in FY11 mainly supported by volume growth from the US pipe plant and Saudi pipe plant.
"While the world is witnessing continuous volatility, we believe that the long term demand scenario remain intact. Welspun's commitment to enhance its global footprint is fortified by our new ERW pipe expansion in the US. We at Welspun are committed to create long term shareholders value," company Chairman BK Goenka said.
The company's LSAW plant in Anjar, Gujarat, with a capacity of 350,000 million tonne has successfully completed its trial run.