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 28th Apr 2017

Fix 5% GST rate for textile goods: Textile bodies

Uniform levy of 5 per cent Goods and Services Tax (GST) on all...

Textiles | On 28th Apr 2017

India lifts CVD imposed on Nepali Jute goods

The countervailing duty (CVD) that was imposed on Nepali jute...

Courtesy: Williamsburg Garment Company

Fashion | On 28th Apr 2017

'We have grown by staying small & maximising efforts'

The easiest way to go out of business is to be too big or expand too...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

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

Hannah Lane

Encouragement from brands will motivate supply chains to become more...

Manuj Terapanthi

Transparent supply chain and fair trade will boost sustainable market

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts

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

Steve Cole
Xerium Technologies

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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:
April 2017

April 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