Welspun Specialty stock zooms 9% after securing contract worth Rs 117 cr

Welspun Specialty stock surges: Shares of Welspun Specialty Solutions climbed as much as 9.01 per cent to hit an intraday high of Rs 45 per share on Tuesday.

The share price soared after the company announced that it has secured a contract worth Rs 117.17 crore for supply of seamless stainless steel boiler tubes.

In an exchange filing, Welspun Specialty Solutions said, “Pursuant to announcement made on June, 23, 2024 regarding BHEL (Trichy) notification to Welspun Specialty Solutions Limited as L1 bidder for supply of Seamless Stainless Steel Boiler Tubes for NTPC Talcher 2 x 660 MW Super critical Thermal Power Project, we are pleased to inform that the said formal Purchase Contract has now been awarded. The final value of the contract is Rs 117.17 Crore (including GST) and is expected to be executed by December 2024.”

 

“The company has received the said contract in the normal course of business. The said transaction is not falling under related party transaction, and is done at arm’s length basis,” Welspun Specialty said.

Mumbai-based Welspun Specialty Solutions specialises in manufacturing and distributing a range of steel products. Originally known as RMG Alloy Steel Limited, the company rebranded as Welspun Specialty Solutions Limited in August 2019. 

Since its inception in 1980, the company has been a key player in the Indian market, offering billets, rolled bars, ingots, blooms, pipes, tubes, bright bars, heat exchange equipment, round-cornered square and round bars, U-bend tubes, hollow bars, and other related tubing products. These products cater to diverse industries including oil and gas, power generation, defence, aviation, chemicals, and fertilisers.

Financial performance

Welspun Specialty Solutions’ net profit stood at Rs 40 crore in the March quarter of financial year 2024 (Q4FY24), as against a profit of Rs 8 crore in Q4FY23. Its total income stood at Rs 156.4 crore in Q4FY24, from Rs 141 crore in Q4FY23.

For the Financial Year ended March 31, 2024, Welspun Specialty Solutions reported a total income of Rs 718.2 crore, as against Rs 432.6 crore in FY23.

The market capitalisation of Welspun Specialty Solutions is Rs 2,331.33 crore, according to Bombay Stock Exchange (BSE). The company trades in the BSE SmallCap index category.

At 10:50 AM, shares of Welspun Specialty were trading 6.40 per cent higher at Rs 43.92 per share. By comparison, BSE Sensex was trading 0.01 per cent lower at 79,470.13 levels.