The Mumbai-based multinational corporation Welspun Corp's shares nose-dived over 8 per cent in the intraday trade on Friday, May 31. This ostensible debacle came to pass on the last day of May, a day after the company released its Q4 results.
Welspun Fails to Meet Expectations
In the results declared, after trading hours on Thursday, 30 May, the company in its consolidated financial results said, that engendered a net profit of Rs 287.28 crore in March 2024, compared to the Rs 240.08 crore net profit in the previous year. This meant a 19.66 per cent jump in profits.
Despite the jump in profits, the downturn in profit shares is being attributed to the company's failure in meeting expectations.
In addition, according to the company's exchange filing, the company's debt-to-equit ratio decreased from 0.68 to 0.38 in March 2024. This could indicate a reduction in risk for investors. The total current liability of the company dropped to Rs 3,976.84 crore in March 2024, from Rs 8,165.19 crore.
Meanwhile other listed companies of Welspun Group (Welspun World) were mostly trading red on the last trading day of the month. Welspun Investments and Commercials Ltd. was trading with a decline of 0.98 per cent or rs 7.30 at Rs 735.10. | Representative Image
Other Welspun Entities Also Suffer
Meanwhile other listed companies of Welspun Group (Welspun World) were mostly trading red on the last trading day of the month. Welspun Investments and Commercials Ltd. was trading with a decline of 0.98 per cent or rs 7.30 at Rs 735.10.
Welspun Enterprises, lost a significant 1.42 per cent or Rs 6.45 to reach Rs 449.45.
In addition, Welspun Living also dropped 1.05 per cent to reach Rs 137.20. Welspun Speciality Solution solution which was trading in green most of the day also slumped (at 14:45 IST) to red by 0.14 per cent, to reach Rs 36.30. The Welspun group companies run business in sectors varying from pipes to textile to reality.
The company shares (Welspun Corp) were trading in red at a decline of 8.50 per cent Rs 51.50 at 550.50 (14:33 IST).
The Indian indices overall were trading in red with a marginal decline in their numbers, after hitting lifetime high, earlier this trading week. The BSE Sensex was trading at decline of 0.11 per cent at 73,801.63 points. NSE Nifty was trading with a marginal deficit of 0.096 per cent at 22,482.45 points (14:54 IST).
