Welspun Specialty posts Rs 4.5 crore net loss in Q2 as EBITDA falls 78%

Welspun Specialty swings to loss in Q2 as margins shrink

Mumbai, Oct 21

The company's revenue from operations increased 23.7 per cent quarter-on-quarter to Rs 240 crore from Rs 194 crore, according to its stock exchange filing.

However, operating performance weakened sharply, with EBITDA plunging 78.3 per cent to Rs 2.3 crore from Rs 10.6 crore in the preceding quarter.

Consequently, EBITDA margin narrowed significantly to 0.95 per cent from 5.5 per cent, as per its regulatory filing.

The decline in operating margins weighed on the company's bottom line, pushing it into losses even as sales growth remained robust during the quarter.

The company's shares closed at Rs 47.48, down 2.22 per cent, or Rs 1.08, on the day. Over the last five trading sessions, the stock has declined 3.93 per cent, or Rs 1.94.

Welspun Specialty Solutions is an alloy and stainless steel manufacturer focused on producing specialty steel products, seamless pipes, and tubes.

The company operates an integrated manufacturing facility spread across 126 acres at Jhagadia in Gujarat's Bharuch district. The plant houses steel melting, casting, rolling, and vertical hot-extrusion facilities under a single campus.

Backed by Welspun Corp Ltd., the company has an annual steel-making capacity of around 150,000 metric tonnes and stainless steel seamless pipe and tube manufacturing capacity of approximately 18,000 tonnes per annum.

Its products cater to a wide range of industries, including oil and gas, nuclear power, petrochemicals, aerospace, automotive, defence, railways, shipbuilding, pharmaceuticals, and agriculture.

Originally incorporated as RMG Alloy Steel Ltd. in 1980, the company was renamed Welspun Specialty Solutions Ltd. in August 2019 and remains a subsidiary of Welspun Corp, which holds a majority stake in the business.

— IANS