- 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.
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
Textiles | On 28th Apr 2017
Uniform levy of 5 per cent Goods and Services Tax (GST) on all...
Textiles | On 28th Apr 2017
The countervailing duty (CVD) that was imposed on Nepali jute...
Fashion | On 28th Apr 2017
The easiest way to go out of business is to be too big or expand too...
Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd
Productivity, creativity and innovation play a vital role in the growth of ...
Encouragement from brands will motivate supply chains to become more...
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...
Coating at a fibre level is a practice not usually seen in the...
Steve Cole of Xerium Technologies discusses the industry. Xerium is the...
Bridal couture created with rich Indian heritage, exquisite craftsmanship...
Label Ritu Kumar
‘Classics will return’ "There are a lot of people wearing western clothes ...
"We should not compare India and the West. There are things we do that...