Welspun Corp reports loss of Rs 70.19 crore in Q3

Leading steel pipe manufacturer Welspun Corp has reported a consolidated net loss of Rs 70.19 crore for the quarter ended December, 2011, largely due to forex losses on account of rupee depreciation. The company had reported a net profit of Rs 146.52 crore for the corresponding quarter of 2010-11.

Net sales of the company, however, rose by over 54% to Rs 2,449.68 crore during the quarter under review from Rs 1,586.21 crore in the same period last fiscal.

Further, the company’s Q3 performance was adversely impacted by Rs 182.3 crore -- foreign exchange provision due to 8.4% depreciation of the rupee during this quarter.

In the October-December quarter, Welspun sold 2,02,000 tonnes of pipe, an increase of about 23% year-on-year, while steel plate sales stood at 1,39,000 tonnes, a growth of 12% vis-a-vis the year-ago period.