Home / Knowledge / News / Textiles / Better product mix helps Welspun post 9% Q3FY13 growth
Better product mix helps Welspun post 9% Q3FY13 growth
07
Feb '13
Welspun India Ltd., part of the $ 3.5 billion Welspun Group announced Q3 and 9M FY13 results, showing strong growth in comparison to corresponding period last year.

Financial Highlights – Q3 FY13
-Sales grew by 9% largely due to higher volumes and better product mix.
-In spite of the increase in raw material costs, increased operational efficiency and the benefits of business restructuring have led to improved EBITDA margins of 18% from 11% in Q3FY12.
-Depreciation flat YoY while Finance expenses marginally lower due to lower debt levels.
-Profit after Tax at Rs. 516 mn; multifold improvement YoY.
 
Financial Highlights – 9M FY13
-Net Sales up by 21% YoY at Rs. 28,904 mn
-EBITDA up by 61% YoY at Rs. 5,095 mn delivering consistent margins of 18% across the three quarters indicating a steady and sustainable business performance.
-Profit after Tax five-fold YoY at Rs. 1,616 mn
- As on 31st Dec 2012, Net Debt stands at Rs. 15,107 mn while Net worth stands at Rs. 9,285 mn implying a Net Debt to Equity of 1.63 xs.
 
Key Developments during the quarter
- Merger of WIL and WGBL completed via court order dated 26 Nov 2012; becomes effective from December 7, 2012 delivering synergy benefits
-Home Textiles (HTT) has ranked Welspun No. 1 in US Home textiles in the recent annual survey released in Jan 2013, climbing up from No. 2 position last year.
-Acquired 13.03% equity stake in Welspun Retail Ltd (WRL) a subsidiary company, raising the effective shareholding in WRL to 98.03%.

Management comments

Speaking about the performance, Mr. Rajesh Mandawewala, Managing Director, Welspun India Ltd., said, “Welspun has continued its progress in the major home textile markets and the latest HTT No: 1 ranking is a testimony to our unprecedented growth. The results indicate the success of our consolidation efforts and renewed focus on our core competencies. Our strong customer relationships, efficient supply chain and innovative product development remain our key strengths. Our vision to become a fully integrated player will further improve performance and enable us to consolidate our position as the top home textile supplier globally”.

Outlook

Indian textile industry is in a favourable position compared to its major competitors, like China and Pakistan, helped by availability of surplus cheap cotton, comparable/lower labour and power costs, along with favourable government policies. Post business consolidation, Welspun is well positioned to fully leverage the Indian competitive advantage and continue on the path of strong and sustainable growth and profitability. The Company’s focus over the next year will be to increase its backward integration, which will result in an improvement in operating performance across all product categories.


Must ReadView All

Apparel/Garments | On 26th Sep 2017

US raises annual AGOA quota for textiles

The US Committee for the Implementation of Textile Agreements has...

Textiles | On 26th Sep 2017

Thrace-LINQ expanding Dorchester County operations

Thrace-LINQ, a global supplier of fabrics for the textile industry,...

Courtesy: Levis

Fashion | On 26th Sep 2017

Google unveils smart denim jacket with Levi Strauss

Ending the months-long wait, Google has unveiled its smart denim...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
75.5%
No
12.2%
Skip
12.2%

Total Votes: 49

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.3%
No
24.5%
Skip
12.2%

Total Votes: 49

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.8%
No
6.1%
Skip
6.1%

Total Votes: 49

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
71.4%
No
10.2%
Skip
18.4%

Total Votes: 49


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search