Mumbai: Saw pipe maker Welspun-Gujarat Stahl Rohren said on, 15 October, its net profit has risen by over two-fold at Rs82.5 crore for the quarter ended 30 September, as against Rs33.5 crore for the corresponding quarter in 2006-07.
The company also announced it would invest about Rs398 crore for increasing capacities at the Special Economic Zone in Gujarat and its existing facility at Anjar.
Total income of the company increased to Rs929.8 crore for the second quarter in 2007-08 from Rs674.9 crore in the year-ago period, up 37.77%, the company informed the Bombay Stock Exchange.
The company would invest Rs298 crore in Gujarat Special Economic Zone for increasing its pipe capacity by 3,00,000 tonnes. The facility would be operational by March 2009, the company informed.
The company would also enhance the capacity of its Anjar facility to 550,000 tonnes from present 400,000 tonnes with an investment of Rs100 crore.
Both the facilities shall be funded by internal accruals and long term loans. On completion, the company shall have annual capacity of 17.5 lakh tonnes making it one of the largest line pipe companies in the world.
“The first half of the year has been outstanding, we not only achieved excellent financial results but also sowed seeds for our future growth by bagging prestigious orders and embarking on new capacity additions,” Welspun managing director B K Goenka said.
The company has also started a trial production of its Plate-cum-coil mill for producing widest plate of 4.5 metres in Gujarat. The plate would have an annual capacity of 1.5 metric tonnes per annum (MTPA).
It is planning expansion in the US by implementing 300,000 tonne project in Little Rock, Arkansas. The facility would be commissioned by July 2008 and would have a capacity of 1 MTPA.
Welspun has procured pipeline orders worth over Rs2,000 crore and the current order book value of the company stands at Rs5,500 crore.