Welspun-Gujarat Stahl Rohren disclosed a phenomenal rise in standalone net profit for the quarter ended March 2008 but below the analysts` expectation.
During the quarter, the profit of the company zoomed 2.46 times to Rs 1,022 million from Rs 415 million in the same quarter, last year. The analysts` polled by Bloomberg had estimated earnings of Rs 1,229 million.
The company posted earnings of Rs 5.95 a share during the quarter, registering 95.08% growth over prior year period. The analysts` had predicted earnings of Rs 6.9 a share during the quarter.
Net sales for the quarter surged 68.59% over previous year period to Rs 12,275 million, while the analysts` had estimated net sales at Rs 13,171 million. Total income for the quarter jumped 69.37% to Rs 12,383 million compared with the prior year period.
The board of directors has recommended dividend of 30%, or Rs 1.50 a share of face value of Rs 5 each.
Shares of the company declined Rs 0.8, or 0.18%, to trade at Rs 450.8. The total volume of shares traded was 494,709 at the BSE. (2.25 p.m., Monday)