Welspun Corp Ltd. announced on Monday, June 3, that its associate company in Saudi Arabia, East Pipes Integrated Company for Industry (EPIC), has secured multiple contracts with Saudi Arabian Oil Company (Aramco) worth approximately ₹3,670 crore. The contracts are set to span 19 months.
In a filing with the stock exchange, Welspun Corp stated that the financial impact of these contracts will start to be reflected from the fourth quarter of the current fiscal year and continue through to the fourth quarter of the 2025-26 fiscal year.
EPIC, a prominent manufacturer of helical submerged arc welded pipes in Saudi Arabia, is known for its fully-integrated manufacturing facilities and a solid track record in executing large-scale projects. The company emphasized that EPIC’s commitment to quality and customer satisfaction positions it well to secure additional projects in both the water and oil and gas sectors, thereby supporting Saudi Arabia’s Vision 2030 strategic objectives.
The announcement comes shortly after Welspun Corp’s March quarter results and guidance for the fiscal year 2025, which disappointed investors. The company projected a revenue of ₹17,000 crore for the new financial year, down 3.3% from the ₹17,582 crore reported in FY24. Additionally, it anticipates a decline in Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) to ₹1,700 crore from ₹1,804 crore in FY24.
Despite the lower revenue and EBITDA projections, Welspun Corp expects its Return on Capital Employed (RoCE) to remain steady at 20% for FY25, consistent with the previous year.
The company reported a drop in its EBITDA margin to 7.4% in the fourth quarter, compared to 10.3% in the same period last year. The EBITDA margin for the December quarter was 9.7%.
This new development with Aramco is a significant milestone for Welspun Corp and EPIC, potentially boosting their financial outlook and reinforcing their strategic objectives in the region.
