Welspun Gujarat Stahl Rohren - Q1 FY 07-08 Results

Net Profit up by 164% to Rs. 693 mn EBITDA by 98% to Rs. 1,333 mn

Welspun Gujarat Stahl Rohren Ltd. (W.G.S.R.L.), part of the US $1 billion Welspun group has reported a Top-line of Rs.8,067 mn in Q1 FY '08, a growth of 51 % as compared to Rs. 5,360 mn in Q1 FY '07. EBITDA grew by 98% from Rs. 674 mn to Rs 1,333 mn. Net Profit increased by 164% and Cash PAT increased by 115% in Q1 FY '08 w.r.t. to Q1 FY '07.

Commenting on the results, Mr. B.K. Goenka, Vice Chairman and Managing Director said, "It has been a remarkable quarter for us. Besides our much-expected impressive growth in earnings, we have set foot in Little Rock , Arkansas , our first facility in the US. In addition, we have established our Engineering Excellence by bagging repeat orders from Oil and Gas giants. We wish to continue our sincere efforts and be a comprehensive provider for state-of-the-art Pipes and related niche products for the transportation of Oil and Gas", he added.

Highlights of Q1 07-08

v Awarded National and International orders worth approximately Rs.30,000 million in this quarter.

v Impressive order-book position of a whooping Rs. 45,000 million, out of which over 60% from repeat customers.

v Impressive 40% order book from new renowned customers from newer territories thereby expanding market base.

v Last few orders received from some of the World's largest companies like Exxon Mobil, Kinder Morgan, Enterprise, audi Aramco, amongst others.

v Welspun commenced construction of $100 million pipe facility in the city of Little Rock, Arkansas , USA at a 740 acre

site adjacent to the Little Rock port.

v Welspun is raising its stake from 60% to 100% by buying 40% stake from Lone Star which has got merged with US Steel.

v The facility, once complete by spring of 2008, will be capable of producing 300,000 net tons of pipes annually for use

in the oil and gas industry and will hire about 300 workers.

v Plate-cum-coil mill progressing as per schedule.