India-based global pipe manufacturer Welspun Corporation has announced its financial results for the financial year 2011-12 ended March 31.
In FY 2011-12, Welspun registered a net profit of INR 23.85 billion ($429.07 million), down 62 percent compared to the previous financial year. The company's sales revenues increased to INR 897.6 billion ($16.14 billion), rising by 12 percent year on year.
In the last quarter of the financial year, Welspun's net profit amounted to INR 11.8 billion ($202.28 million), remaining stable compared to the corresponding period of FY 2010-11. The sales revenues of the company increased by 24 percent year on year to INR 270 billion ($4.85 billion).
According to the pipe manufacturer's statement, pipe sales in the full financial year decreased to 835,000 mt, down 8.14 percent, while plate sales increased by nine percent to 531,000 mt, both year on year.
Regarding the output volumes, Welspun announced that in the financial year 2011-12 it produced 818,747 mt of pipes, down 15 percent, and 507,015 mt of plates, up one percent, both year on year.
Welspun also stated that its 175,000 mt per year ERW and coating plant in the US will be commissioned by March 2013 as scheduled. The company expects demand for ERW pipes to remain robust thanks to shale gas activity; however, the capacity utilization in the sector continues to be low.