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

Textiles | On 21st Feb 2017

Net profit at Indorama Ventures zooms 145% in 2016

Net profit at Thailand headquartered and Aloke Lohia led Indorama...

Information Technology | On 21st Feb 2017

ThreadSol launches IntelloBuy & IntelloCut in Vietnam

ThreadSol, the pioneer of enterprise material management for sewn...

Textiles | On 21st Feb 2017

GST to reduce documentation for logistics firms: CBRE

The Goods and Services Tax (GST) is likely to result in a reduction...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Silvia Venturini Fendi
Fendi s.r.l

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

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


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search