Home / Knowledge / News / Textiles / Net profits zoom 75% at Welspun India in Q1 FY'14
Net profits zoom 75% at Welspun India in Q1 FY'14
Aug '13
Welspun India Ltd., (WIL), part of the $ 3.5 billion Welspun Group announced Q1 FY14 results, showing strong growth in profitability in comparison to the corresponding period last year.

Key developments

- In April 2013, the company’s subsidiary - Welspun Captive Power Generation Ltd. - has commissioned a thermal power plant at Anjar.

Consolidated Financial Highlights – Q1 FY14

- Revenue from Operations at Rs. 9,446 million vs. Rs. 9,734 million in Q1 FY14 showing a stable performance YoY despite the rationalisation of some overseas businesses.

- In spite of the increase in raw material costs of ~5%, increased operational efficiency and lower power costs contributed to an improvement in EBITDA margin to 23.6% as compared to 17.5% in Q1 FY13.

- Finance cost and depreciation higher YoY, primarily due to the impact of the captive power plant.

- Profit after Tax at Rs. 899 million as compared to Rs. 514 million in Q1 FY13 showing significant improvement YoY.

- Net worth, which was impacted by decrease in Hedging Reserve of Rs. 1,364 million, stands at Rs. 9,311 million. Excluding the hedging reserve, net worth would have been Rs. 10,353 million as against Rs. 9,580 million as of March 31st, 2013.

- As on 30th June 2013, Net long term debt stands at Rs. 10,799 million implying a net long term debt/equity of 1.16x.

- Net long term debt/Operational EBITDA (annualized) stands at 1.34x and the Net debt/ Operational EBITDA (annualized) stands at 2.53x.

Project Status

The vertical integration project to increase spinning and weaving capacity is on schedule and expected to be completed by end of FY14. Apart from ensuring quality and availability of key intermediate products such as yarn and fabric, the backward integration will contribute to improve the profitability of WIL significantly.


According to the recently released TEXPROCIL- Gherzi Benchmarking Study, India’s competitiveness against six benchmark countries (including China, Pakistan and Bangladesh) has significantly improved in the last 10 years thanks to factors such as technology up-gradation, competitive power and wage costs, and a holistic enabling environment.

This has resulted in the Indian textile industry, especially home textiles, gaining market share in the global arena. The market share gain is expected to continue, supported by domestic factors such as surplus cotton and favourable government policies.

The US market, the biggest for Indian manufacturers, is showing signs of getting back on the growth path, with an improvement in consumer confidence, home sales and retail sales. Other markets like Europe, Japan and South Korea are also opening up, aided by Free Trade Agreements (FTAs), which have already been signed or expected to be signed soon. While the domestic market continues to grow, opening up of FDI in retail is expected to give it a further boost.

Click here to read full results

Welspun India

Must ReadView All

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Poojaa Kumar Deepak

Zeven's performance sports apparel is designed for the Indian body type,...

Paolo Ocleppo
Sandvik Hyperion

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Mike Hoffman
Gildan Activewear SRL

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

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

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


Browse Our Archives


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