Home / Knowledge / News / Textiles / Welspun India revenues leap 23% in Q2 FY'14
Welspun India revenues leap 23% in Q2 FY'14
26
Oct '13
Welspun India Ltd., (WIL), part of the $ 3.5 billion Welspun Group announced Q2 FY14 results, showing strong growth in revenue and operating profit in comparison to the corresponding period last year.
 
 
 
Consolidated Financial Highlights – Q2 FY14
- Revenue at Rs. 12,191 million vs. Rs. 9,945 million in Q2 FY13 - 23% growth YoY primarily due to strong volume growth in towels and rugs.
- EBITDA margin improved to 22.8% as compared to 17.5% in Q2 FY13.
Finance cost 22% higher YoY, primarily due to the additional debt on account of the consolidation of the captive power plant. 
- During the quarter, the Company has changed the method of providing depreciation on its plant and machinery from straight-line method to reducing balance method. This has resulted in an additional one-off depreciation of Rs. 4,631 million for the period up to June 30, 2013 which has been provided in the current quarter. The change in methodology has also resulted in an increase of Rs. 41 million for the current quarter, which has contributed to a 15% increase in depreciation in Q2 FY14 compared to the previous quarter. 
- Profit after Tax (adjusted for the one-off depreciation) has doubled to Rs. 1,166 million from the Q2 FY13 level of Rs. 586 million. 
- Net worth, which was impacted by the one-off depreciation taken, stands at Rs. 7,119 million. 
- As on 30th September 2013, Net long term debt stands at Rs. 12,161 million implying a net long term debt/equity of 1.71x. The increase in debt QoQ was on account of drawdown of loans for the backward integration capex.
- Net long term debt/Operational EBITDA (annualized) stands at 1.32x and the Net debt/ Operational EBITDA (annualized) stands at 2.32x.
 
Project Status     
The vertical integration project to increase spinning and weaving capacity is on schedule and expected to be completed by end of FY14. 
 
Outlook  
India’s market share in global home textile exports has been continuously increasing over the last few years. The market share gain is expected to continue, supported by factors such as surplus cotton in the country, competitive factor costs and supportive policy regime. 
 
With economic growth showing signs of improvement, the US market is expected to pick up pace. Europe is also showing signs of a revival, with consumer confidence hitting six-year highs in many important markets such as UK and Germany. With many foreign retailers planning to set up their operations in India post the opening up of FDI in retail, the domestic market is expected to grow considerably.
 
Speaking about the performance, Mr. B.K. Goenka, Chairman, Welspun India Ltd., said, “We continue to deliver strong operating results, as in the last few quarters. To sustain and improve our margins, we have already taken several steps such as increasing share of premium products, raising our level of backward integration and setting up a captive power plant. We will continue to strive to be the preferred home textile supplier for our customers, through our innovation, scale and reach.”
 

Welspun India

Must ReadView All

Courtesy: India ITME

Textiles | On 8th Dec 2016

Industry needs to create 1cr jobs in 3yrs: Kavita Gupta

Sharing several initiatives laid out by the government in R&D,...

Textiles | On 8th Dec 2016

Package will boost made-ups sector: SIMA

The reforms package approved by the Union Cabinet to boost employment ...

Textiles | On 8th Dec 2016

Cabinet okays reforms to boost jobs in made-ups sector

The Union Cabinet chaired by prime minister Narendra Modi has given...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Nuno Venda
ROQ

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

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Larry L Kinn
Suominen Corporation

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

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...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search