Welspun Specialty Secures Rs.117 Crore Order from BHEL

Welspun Specialty Solutions Ltd. has secured a major order worth Rs.117 crore from Bharat Heavy Electricals Ltd. (BHEL) which involves supplying stainless steel boiler tubes to the NTPC Talcher thermal power project, expected to be completed by December 2024, according to an exchange filing that came out yesterday.

Official Statement

In a filing, Welspun Specialty stated, “Pursuant to the announcement made on June 23, 2024, regarding BHEL (Trichy) notification to Welspun Specialty Solutions Limited as L1 bidder for the supply of Seamless Stainless Steel Boiler Tubes for NTPC Talcher 2 x 660 MW Supercritical Thermal Power Project, we are pleased to inform that the formal Purchase Contract has now been awarded. The final contract value is Rs.117.17 crore (including GST), and it is expected to be executed by December 2024.” The company clarified that this contract was received in the normal course of business and is not a related party transaction.

Company Background

Mumbai-based Welspun Specialty Solutions, formerly known as RMG Alloy Steel Limited until its rebranding in August 2019, is a manufacturer and distributor of alloy and stainless steel products. Since its inception, the company has supplied a wide range of products, including billets, rolled bars, ingots, blooms, pipes, tubes, and various other tubing products. These products serve multiple industries, such as oil and gas, power generation, defense, aviation, chemicals, and fertilizers.

Financials 

Welspun Specialty Solutions reported a net profit of Rs.40 crore in Q4FY24, a significant increase from Rs.8 crore in Q4FY23. The company’s total income for Q4FY24 stood at Rs.156.4 crore, up from Rs.141 crore in Q4FY24. For FY24, the company’s total income was Rs.718.2 crore, compared to Rs.432.6 crore in FY23.

Market Cap and Stock Performance

Welspun Specialty Solutions has a market capitalization of Rs.2,331.33 crore and trades in the BSE SmallCap index category. Following the announcement, shares of Welspun Specialty Solutions experienced notable movement. Yesterday, the stock closed 1.62% lower at Rs.41.28 per share. However, today the stock surged as much as 6%, reaching an intraday high of Rs.44 per share.

Conclusion: In conclusion, by securing the Rs.117 crore order from BHEL for supplying stainless steel boiler tubes to the NTPC Talcher project, Welspun Specialty Solutions strengthens its industry position. This contract, alongside strong financial performance, will help in boosting investor confidence, evidenced by a notable stock surge to an intraday high of Rs.44 per share.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.