Welspun Corp , a leading player in the pipe manufacturing industry, has demonstrated resilience in the face of recent tariff announcements by former US President Donald Trump. Despite an initial 7% drop in share price following the news, the company's management remains confident in its position and future prospects.

US Operations Shielded from Tariff Impact

MD Vipul Mathur emphasized that Welspun Corp's US operations are effectively insulated from the potential negative impacts of the tariffs. The company operates as a local producer in America through its Arkansas facility, positioning it advantageously in the market. Mathur suggested that the tariffs could potentially benefit rather than hinder Welspun Corp's business in the US.

Strong Order Book and Revenue Visibility

Welspun Corp boasts a robust order book of ₹19,000.00 crore, providing significant revenue visibility for the coming quarters. This includes:

• Eight quarters of visibility in the US market
• Four quarters of visibility in the domestic Indian market

Expansion Initiatives

Saudi Arabia Joint Venture

Welspun Corp is expanding its global footprint through a strategic joint venture with Saudi Aramco. Key details include:

• New plant location: Dammam, Saudi Arabia
• Annual capacity: 350,000.00 metric tonnes
• Target commissioning: End of FY26

Domestic Market Expansion

The company is also focusing on expanding its presence in the Indian market, targeting new regions including:

• Chhattisgarh
• Punjab
• Goa
• Odisha
• Telangana

Financial Position and Future Targets

Despite a substantial capital expenditure of ₹450.00 crore in the June quarter, Welspun Corp maintains a net-cash positive position. The company has set ambitious targets for FY26:

Analyst Outlook

JM Financial has issued a positive outlook for Welspun Corp, with a price target of ₹1,180.00. This represents a potential upside of 35% from the closing price of ₹875.00.

In conclusion, Welspun Corp appears well-positioned to navigate the current market challenges, leveraging its localized US production, strong order book, and strategic expansion plans to drive growth in the coming years.

Welspun Corp Limited , a leading global manufacturer of welded line pipes, has reported robust financial performance for the first quarter, alongside securing a significant order upsizing for its US operations.

Strong Q1 Financial Performance

The company delivered impressive quarterly results, with revenue increasing to ₹3,551.49 crore from ₹3,137.23 crore in the same period last year, marking a growth of 13.2%. Welspun Corp's net profit demonstrated significant growth, reaching ₹349.16 crore versus ₹247.94 crore in the previous year's corresponding quarter, representing a 40.8% increase.

The company's operating EBITDA margin improved to 16.21% from 13.84% in the previous year quarter. Net profit margin stood at 9.83% compared to 7.90% in the corresponding quarter.

Financial Highlights

Other Developments

• The company allotted 8,72,500 equity shares during the quarter upon exercise of Employee Stock Options, increasing paid-up equity capital to ₹131.61 crores.
• Welspun Corp sold additional 10% equity shares in Nauyaan Shipyard Private Limited for ₹51.72 crores, resulting in an exceptional gain.
• The debt-equity ratio remained low at 0.13 times, indicating a strong financial position.

Order Book Enhancement

In a separate announcement, Welspun Corp revealed the upsizing of an existing coated spiral pipe order for its Little Rock facility in the USA. The order has been upgraded from 36" to 42", resulting in an increase in the overall order value by approximately ₹735 crore.

Strengthened Market Position

With this latest development, Welspun Corp's consolidated order book now stands at an impressive ₹19,000 crore. The company expects to execute these orders primarily during the upcoming fiscal years.

Vipul Mathur, Managing Director and Chief Executive Officer of Welspun Corp Limited, commented on the order upsizing, stating, "These wins continue to reinforce our leading and dominant market share in the USA O&G transmission space. Our outlook for the USA market continues to remain positive for the next few years, and Welspun is fully poised to benefit from more opportunities in the time to come."

As Welspun Corp continues to strengthen its order book and improve its financial metrics, the company appears well-positioned to capitalize on future opportunities in the pipeline infrastructure industry.