Welspun Specialty Share Price Surges 17% on ₹117 Crore BHEL Contract Win

Welspun Specialty Solutions Ltd (WSSL) saw its shares jump by more than 17% on the BSE after being named the lowest bidder for a ₹117 crore contract from Bharat Heavy Electricals Ltd (BHEL).

By 11:41 AM, shares of Welspun Specialty share price were up by 12%, trading at ₹42.5 each. Over the past six months, the stock has risen by 5%, lagging behind the Nifty 50 index, which saw an almost 10% increase during the same timeframe. 

On June 23, Welspun Specialty announced to the BSE that it had been selected as the L1 bidder by BHEL for supplying seamless stainless steel boiler tubes for the National Thermal Power Corporation's (NTPC) Talcher 2 x 660 MW supercritical thermal power project.

In an exchange filing, Welspun Specialty said, “We are pleased to inform that Welspun Specialty Solutions Limited (WSSL) has been notified as L1 bidder by Bharat Heavy Electricals Limited (BHEL, Trichy) for supply of Seamless stainless steel Boiler Tubes for National Thermal Power Corporation (NTPC) Talcher 2 x 660 MW Super critical Thermal Power Project.” The company stated that the total value of the supply contract is around ₹117 crore. According to Welspun, this selection came after a thorough assessment and approval process by both BHEL and NTPC.

Welspun Specialty Solutions reported a net profit of ₹40 crore for the March quarter of the financial year 2024 (Q4FY24), a significant increase from the ₹8.06 crore profit in Q4FY23. The company's total income for Q4FY24 was ₹156.4 crore, compared to ₹141 crore in the same quarter the previous year. For the financial year ending March 31, 2024, Welspun Specialty Solutions recorded a total income of ₹718.2 crore, up from ₹432.6 crore in FY23. According to the Bombay Stock Exchange (BSE), the market capitalization of Welspun Specialty Solutions stands at ₹2,229.02 crore, and the company is categorized under the BSE SmallCap index.

Welspun Specialty is a comprehensive manufacturing facility for stainless steel long products, as well as seamless pipes and tubes, spanning 126 acres in Jhagadia, Gujarat. Previously known as RMG Alloy Steel Ltd, the company is now Welspun Specialty Solutions Limited.

Founded in 1980, the company has established itself as a major player in the Indian market, providing a range of products including billets, rolled bars, ingots, blooms, pipes, tubes, bright bars, heat exchange equipment, round-cornered square and round bars, U-bend tubes, hollow bars, and other related tubing products. These offerings serve various industries such as oil and gas, power generation, defense, aviation, chemicals, and fertilizers.