Welspun Gujarat maintains steady growth • Revenue growth by 47% • Grand opening of U.S. facility with over 300 employees • Coil Mill in Anjar implemented, commissioning in progress

Mumbai, 29 May 2009: Welspun Gujarat Stahl Rohren Ltd., (Welspun) the flagship Company of the $3 billion Welspun Group today announced its results for the 4th quarter and year ended March 31, 2008, with Q4 turnover of Rs.18318 Million.

Summary of Q4 FY09 Results (Figures in Rs. Million)

Particulars

Q4 FY09

Q4 FY08

FY 2009

FY 2008

Sales 18,318 12,233 58,783 40,105 EBITDA* 1,634 2,071 6,525 6,715 PAT 518 1,022 2,336 3,514 EPS 2.82 5.49 12.50 18.89 EBITDA Margin

8.9% 16.9% 11.1% 16.7%

PAT Margin

2.8% 8.3% 4.0% 8.8%

*Exceptional item for the quarter includes Foreign Exchange provision of Rs 1314 million due to the sharp fluctuation and volatility of foreign exchange rates. The same amount totals to Rs. 3433 million for FY09, out of which Rs. 1256 Million is on account of foreign exchange provision on asset liability, which is likely to be recovered by way of future sales. As you may recollect, in Q3 FY09 the Company had provided inventories to its net realizable value, due to sharp reduction in raw material prices world-wide. This resulted in inventories provision of Rs. 385 Million in P&L account. Thus the Company’s operational EBIDTA totals up to Rs. 8011 Million in line with our sales tonnage as given below: Analysis of Results

• Sales have grown by 49% during the quarter on the back of higher realization which is linked to higher raw material prices and plate sales.

• Exceptional items as explained above have adversely impacted the EBITDA margins.

• Depreciation and interest are higher in comparison to corresponding quarter of last year on account of commissioning of Plate Mill, Power Plant, U.S. facility, Spiral III of 150K in Anjar.

Annual Dividend Proposal

The board of directors additionally proposed, the payment of an annual dividend of Rs. 1.5 per share translating into 30% dividend in line with our past dividend policy. Fund Raising The board passed enabling resolution for issuance of equity linked instruments up to USD 200 million. The same shall be raised at an appropriate time looking into market conditions and the funds shall be utilized for organic / inorganic growth as well as to reduce the leverage of the Company. Order Book position The year began with an outstanding Order Book of Rs. 48,000 Million. We further added orders over Rs. 77,000 Million almost in line with the previous year despite the global slowdown since September 2008. These new orders from esteemed Oil and Gas clients, further consolidates Welspun’s presence both in domestic as well as International Market. After executing orders worth Rs. 55,700 Million in FY09, the current Pipe Order Book of the Company stands at Rs. 71,000 Million. It is noteworthy to mention that order book for the Plate division is taking shape. Besides internal orders, the Company has added external orders of Rs. 6,400 Million this year. The combined order book for Plates and Pipes is Rs. 77,400 million. Breakdown of Production Product wise (in tons) Production Volume

Q4 FY09 Q4 FY08 Change FY 2009 FY 2008 Change

LSAW*

43,957

74,361

41%

185,328

259,347

-29%

HSAW

181,090

100,305

81%

493,934

364,538

35%

ERW

25,503

7,951

221%

80,480

46,240

74%

Total Pipes

250,550

182,617

37%

759,742

670,125

13%

Plates

45,454

-

192,569

-

* Order changed to HSAW by the customer

Breakdown of Sales Product wise (in tons)

Sales Volume*

Q4 FY09 Q4 FY08 Change FY 2009 FY 2008 Change

LSAW

29,207

88,307

-67%

156,853

259,300

-40%

HSAW

127,711

93,977

36%

453,768

331,113

37%

ERW

28,572

10,338

176%

79,537

51,071

56%

Total Pipes

185,490

192,622

-4%

690,158

641,484

8%

Plates

8,138

-

42,073

-

* Almost 90,000 ton inventory of Pipes in finished / semi-finished stage.

Status of Projects:

Ø Grand opening by honorable Governor of Arkansas, Mr. Mike Beebe,

350,000 ton HSAW mill in Little Rock, Arkansas, U.S. employing over 300

people, largely local

Ø Pipe Capacity increased to 1.5 million MTPA (includes HSAW - 150K MTPA

in India and 350K MTPA in U.S).

Ø Plate-cum-Coil mill being demerged into a 100% subsidiary.

Ø Plate Mill steered to stabilization

Ø Coil Mill implemented, being commissioned

Ø LSAW expansion of 300K MTPA kept on hold due to current market

situation

Management comments

Speaking on the results, Mr. B. K. Goenka, Chairman and Managing Director of Welspun said, “It is my pleasure that with the trust and support of our shareholders, our vision to emerge as most respected Pipe Company in the World is turning into reality. The capacity expansion to 1.5 MTPA; Commissioning of the new mill in the U.S. and the upswing in the overall economic scenario, has led us to believe that FY 10 will undoubtedly be a year to watch out for WGSRL!” he adds.

Outlook The ebb and flow of the overall global economic environment needs careful monitoring. The commodity market and financial markets have undergone huge correction, with continued volatility. All these factors have weakened business sentiments in general. Our country though affected mildly, is not insulated with this commotion. We believe the revival will take place with increasing infrastructure spending by various developed countries. As Welspun products serve Oil and Gas majors in the last leg of their CAPEX cycle; we believe the demand will continue to be strong particularly given the recovery in Oil price in recent months. The Indian Market particularly looks positive where major projects are likely to be awarded this year. The Company continues to operate with stated conservative approach of booking raw material, hedging foreign currency and long term shipping contracts immediately on receiving the confirmed orders. About W.G.S.R.L.: Welspun Gujarat Stahl Rohren is part of the $ 3000 million Welspun Group. The company started its activities in 1995 and since then has supplied pipes for some of the most prestigious projects including the World’s deepest pipeline project in the Gulf of Mexico, U.S.A. Welspun’s state- of-the- art Plants are located in Dahej and Anjar in Gujarat, India. The Company has recently commissioned a World Class Plate mill in Little Rock, Arkansas, U.S. The manufacturing facilities incorporate the hybrid JCO technology from Mannesmann Demag of Germany (SMS Meer). The company has been the leader in quality, innovation and technology and enjoys distinction of supplying highest recognized X 80 grade and 56” outer diameter line pipes in the country. WGSRL is prepared to meet the growing demand and is in a position to meet the stringent requirements and standards of high grade line pipes. ---------------------------------------------------------------------------------- DISCLAIMER: The information in this release has been included in good faith and is for general purposes only. It should not be relied upon for any specific purpose and no representation or warranty is given as regards to its accuracy or completeness. No information in this release shall constitute an invitation to invest in Welspun Gujarat Stahl Rohren Ltd. or any of its affiliates. Neither Welspun Gujarat Stahl Rohren Ltd., nor their or their affiliates' officers, employees or agents shall be liable for any loss, damage or expense arising out of any action taken on the basis of this press release, including, without limitation, any loss of profit, indirect, incidental or consequential loss.

Particulars Quarter ended Quarter ended Year ended Year ended

31-03-2009 31-03-2008 31-03-2009 31-03-2008

Net Sales/ Income from Operations

18,318 100.0% 12,233 100.0% 58,783 100.0% 40,105 100.0%

(Increase)/ Decrease in stock in trade

(824) -4.5% 545 4.5% (4,113) -7.0% (1,204) -3.0%

Consumption of Raw Materials 15,651 85.4% 7,580 62.0% 46,227 78.6% 27,644 68.9%

Other manufacturing cost

1,882 10.3% 2,189 17.9% 10,323 17.6% 7,136 17.8%

EBIDTA (Operational) 1,609 8.8% 1,920 15.7% 6,346 10.8% 6,529 16.3%

Other Income 26 0.1% 151 1.2% 179 0.3% 186 0.5%

EBIDTA (Reported) 1,634 8.9% 2,071 16.9% 6,525 11.1% 6,715 16.7%

Interest/Finance Charges-(Net) 501 2.7% 347 2.8% 1,735 3.0% 802 2.0%

Depreciation 344 1.9% 180 1.5% 1,254 2.1% 572 1.4%

Profit before Tax 788 4.3% 1,545 12.6% 3,536 6.0% 5,342 13.3%

Cash Tax (91) -0.5% (165) -1.4% 451 0.8% 884 2.2%

Deferred Tax 361 2.0% 688 5.6% 750 1.3% 944 2.4%

Profit After Tax 518 2.8% 1,022 8.4% 2,336 4.0% 3,514 8.8%

Cash PAT 1,224 6.7% 1,890 15.4% 4,340 7.4% 5,030 12.5%

EPS Diluted 2.82 5.49 12.50 18.89

(Rs Lakhs)

Particulars Year ended Year ended Year ended Year ended 3/31/2009 3/31/2008 3/31/2009 3/31/2008

(I) (II) (III) (IV)1 Sales/Income from Operations 581,343 417,099 589,303 415,499

Sales of Traded goods 29,625 206 7,786 206 Less: Excise Duty 23,137 16,259 23,137 16,259 Net Sales/ Income from Operations 587,831 401,045 573,953 399,445

2 Total Expenditurea. (Increase)/ Decrease in stock in trade (41,130) (12,042) (44,034) (12,042) b. Consumption of Raw Materials 434,632 276,247 436,535 274,739 c. Purchase of Traded Goods 27,637 197 7,765 197 d. Employees Cost 11,529 8,297 13,221 8,600 e. Depreciation 12,542 5,715 14,328 6,088 f. Other Expenditure 91,699 62,269 96,989 62,399

Total 536,909 340,682 524,803 339,981 3 Profit from Operations before other income and Interest (1-2) 50,922 60,363 49,149 59,464 4 Other Income 1,788 1,073 1,870 1,073 5 Profit before Interest and Tax (3+4) 52,710 61,436 51,019 60,537 6 Interest/Finance Charges-(Net) 17,350 8,016 17,663 8,181 7 Profit before Tax (5-6) 35,361 53,421 33,356 52,357 8 Provision for Taxation (Current, Deferred and Fringe Benefit Tax etc) 12,004 18,278 12,004 18,279 9 Profit After Tax (7-8) 23,357 35,142 21,351 34,078 10 Share of Loss in Associates - - - (0) 11 Minority Interest in Profit/(Loss) - - 1 - 12 Profit After Tax after Minority Interest (9-10-11) 23,357 35,142 21,350 34,078 13 Paid up Equity Capital (Face Value of Rs.5/- each) 9,325 8,888 9,325 8,888 14 Reserves excluding Revaluation Reserve 148,655 140,059 146,644 138,965 15 Basic and Diluted EPS

-Basic 12.59 21.53 11.51 20.87 -Diluted 12.50 18.89 11.45 18.31

16 Public Shareholding a) Number of shares 104,549,989 103,274,411 104,549,989 103,274,411 b) Percentage of shareholding 56.06% 58.10% 56.06% 58.10%

17 Promoters & Promoters Group Shareholding as on 31 March 2009

a. Pledged/EncumberedNo of Shares NIL NILPercentage of Shares (as a % of the total Shareholding of Promoters & Promoter Group) NIL NILPercentage of Shares (as a % of the total Share capital of the Company) NIL NIL

b. Non-EncumberedNo of Shares 81,941,203 81,941,203 Percentage of Shares (as a % of the total Shareholding of Promoters & Promoter Group) 100.00% 100.00%Percentage of Shares (as a % of the total Share capital of the Company) 43.94% 43.94%

Notes:1

2

3

4

5

6 Previous year's/Period's figures have been regrouped and reclassified wherever considered necessary.7 Segment Reporting as required under Accounting Standard 17 is not applicable as the Company operates only in one segment.8 The Board of Directors have recommended dividend of 30% on Equity shares (Rs.1.50 per share of Face Value of Rs.5 each).9 The above results were reviewed and recommended by the Audit Committee and taken on record by the Board of Directors in

its meeting held on 29th May, 2009 in terms of Clause 41 of the Listing Agreement.For Welspun Gujarat Stahl Rohren Limited

Place: Mumbai B.K.GoenkaDate: 29th May 2009

WELSPUN GUJARAT STAHL ROHREN LIMITEDRegd:Welspun City, Village Versamedi Taluka Anjar, Dist.Kutch Gujarat 370110

Corp Office: B-Wing, 9 th Floor, Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai-400013.

Chairman & Managing Director

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2009

Audited Audited

During the quarter ended 31st March 2009, the Company's subsidiary in USA has commenced commercial production of Spiral Pipes (with capacity of 350,000 MT) at its facility.

There were no investor complaints outstanding at the beginning of the quarter. During the quarter, 23 complaints were received and resolved.

Standalone Consolidated

The Board of Directors at their meeting held on 20th April 2009 has approved a Scheme of Arrangement in the nature of demerger to transfer of Plate and Coil Mill Division of the Company to "Welspun Plates and Coil Mills Private Ltd". (wholly owned subsidiary of the Company) with all assets and liabilties. The Scheme is subject to approval of creditors & members of the Company and the Hon’ble High Court of Gujarat. The Appointed date for demerger is 1st April 2009.

According to the Companies (Accounting Standards) Amendment Rules 2009 has amended the provision of AS-11 related to "Effects of the changes in Foreign Exchange Rate". The Company has capitalised exchange loss of Rs. 6,162 Lakhs (net gain of Rs. 93 lakhs, adjusted through General Reserve pretaining to earlier year) with the cost of fixed assets and exchange loss of Rs. 5,325 Lakhs transferred to "Foreign Currency Monetary Item Translation Difference Account" to be amortised over the balance period of such long term assets/liabilities but not beyond 31st March 2011. Out of the above Rs.1,775 Lakhs has been written off in the current year and Rs.3,550 Lakhs has been carried over.

Total foreign exchange loss on account realignment, realization, cancellation loss amounting to Rs. 34,332 Lakhs has been provided during the year. Out of which Rs.12,562 Lakhs is on account of realignment of foreign currency monetary assets and liabilities