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

Market share of Indian textile items expand in 13 nations

Textiles | On 11th Dec 2017

Market share of Indian textile items expand in 13 nations

Thirteen countries — Germany, France, Italy, the United States,...

Courtesy: EUBrasil

Textiles | On 11th Dec 2017

Euratex, ABIT welcome negotiations for EU-Mercosur FTA

European Apparel and Textile Confederation (Euratex) and the...

Most firms expect no change in investment plans: CII survey

Textiles | On 11th Dec 2017

Most firms expect no change in investment plans: CII survey

Despite visible optimism in Indian industry with the Confederation of ...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Sonia Agarwal
Whitenife

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

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mike Hoffman
Gildan Activewear SRL

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


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