Welspun Corp wins ₹512 crore order in Saudi Arabia, days after Aramco order cancellation

This recent win follows closely on the heels of Welspun Corp's notification to the exchanges regarding EPIC's mutual agreement with Saudi Aramco to terminate a contract valued at ₹339 crore.

However, Welspun mentioned that this will not impact EPIC as the contract was not included in EPIC's production schedules during the current fiscal year and the raw material for the contract is yet to be procured. "The cancellation does not affect the operating plans during the period scheduled for implementation," Welspun Corp said.

Welspun also spoke about EPIC's order backlog, mainly linked to ongoing gas and water transmission projects. The cancelled contract represents 6% of the total awards by Saudi Aramco, which are over ₹6,000 crore.

"We are quite optimistic about the prospects of our associate company EPIC, which are further supported by Aramco’s diversification of its energy mix, as well as the increasing demand for water transmission lines," Welspun said in the exchange filing.

Welspun Corp had informed the exchanges on Friday that the company had won line pipe orders in India and the US worth over ₹2,039 crore from February 6 till March 22. These orders are most likely to be executed in the financial year 2025.

Shares of Welspun Corp ended 1.88% higher last Friday at ₹534. The stock has risen 180% over the last 12 months.