Welspun Corp tanks 8% after a sharp slump in Q1 profit

New Delhi: Shares of Welspun Corp plunged more than 8 per cent during the early trade on Friday after the company reported a disappointing performance in the June 2022 quarter.

The flagship company of the Mumbai-based Welspun Group reported a 96 per cent drop in the net profit to Rs 4 crore in the quarter ended June 30, 2022. The company's consolidated net profit stood at Rs 94 crore in the year-ago period.

Following the development, shares of Welspun Corp plunged more than 8 per cent to Rs 202.75 on Friday, before trading at Rs 209.10 at 9.25 am. The scrip had settled at Rs 221.10 on Thursday.

During the April-June period of 2022, total revenue came in at Rs 1,322 crore down 12 per cent from Rs 1,510 crore in the corresponding previous quarter.

Welspun Corp has granted 11 lakh stock options (ESOPs) under 'Welspun Employee Stock Option Plan 2005' to Vipul Mathur, Managing Director and CEO, the company informed the bourses in a separate filing.

The company said the commissioning of its blast furnace (BF) and sinter plant, and TMT bars manufacturing facility at Anjar, Gujarat was completed in July 2022.

The aforesaid stock option is vested on three anniversaries beginning from August 3, 2023. The face value of each share is Rs 5 each, at an exercise price of Rs 100 per share, which is a discount of 55 per cent compared to its previous close.

The company's current global order book stands at 1,020 KMT valued at Rs 13,350 crore. In another filing, the company said that it is preparing to execute its largest order ever in the US, valued at more than Rs 5,000 crore.