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

Welspun Corp Ltd.’s associate company East Pipes Integrated Company for Industry (EPIC), has won an order worth ₹512 crore for manufacture and supply of steel pipes, it said in an exchange filing.

The duration of the contract is for 30 months and the financial impact will reflect in the first quarter of financial year 2025 till the third quarter of financial year 2027.

EPIC is Saudi Arabia’s leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes. The company said that EPIC remains well placed to win further projects both in water and Oil & Gas sector.

This order win comes just days after Welspun Corp informed the exchanges that EPIC has announced a mutual agreement with Saudi Aramco to stop and cancel a contract worth ₹339 crore.

However, Welspun mentioned that this will have no impact on EPIC as the contract was not included in EPIC’s production schedules during the current fiscal year and that 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, which is mainly linked to ongoing gas and water transmission projects.

The cancelled contract represents 6% of the total awards by Saudi Aramco, which are in excess of ₹6,000 crore.

“We are quite optimistic about the future 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 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.