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Welspun India operational EBITDA escalates 55% in FY'14

20 May '14

2 min read

Welspun India Ltd., (WIL), part of the $ 3.5 billion Welspun Group announced Q4 FY14 and FY 14 results, showing strong growth in revenue and profitability in comparison to the corresponding period last year.

Consolidated Financial Highlights – FY 14

Revenue at Rs. 44,954 million vs. Rs. 36,473 million in FY14 - 23% growth YoY with strong volume growth in towels and rugs and higher realization across products. This is the highest annual sales in the history of the company.

Operational EBITDA up by 55% at Rs. 9,211 million (vs. Rs. 5,946 million). Operational EBITDA margin improved to 20.5% in FY14 as compared to 16.3% in FY13. Annual EBITDA and EBITDA margin are at the highest level in the history of the company.

Reported Depreciation for the year stood at Rs. 6,863 million. This was high primarily on account of the change in depreciation policy from straight line method to reducing balance method, which resulted in an additional one-time depreciation of Rs. 4,631 million in Q2FY14. In order to maintain consistent accounting policies, Welspun Captive Power Generation Limited (WCPGL), a 68% subsidiary of the Company has also provided depreciation on its plant and machinery on reducing balance method which has resulted in an additional depreciation of Rs. 329 million in Q4 FY14 (total impact of Rs.4,960 million in FY13). Adjusted for these effects, depreciation for the year would have been Rs. 1,903 million.

Finance cost is higher y-o-y on account of consolidation of the captive power plant debt and higher working capital debt. Profit after Tax (adjusted for the additional depreciation) grew 87% y-o-y to Rs. 4,195 million in FY14 vs. Rs. 2,248 million in FY13, on account of the strong growth in revenues and improvement in operating margins.

Net worth at the end of the year stands at Rs. 11,097 million as against Rs.9,902 million at end-FY13. Net debt stands at Rs. 26,635 million and net long term debt stands at Rs. 15,286 million in FY14. This implies a net debt/equity of 2.40x and net long term debt/equity of 1.38x. The increase in debt was on account of drawdown of loans for the backward integration capex, borrowing for purchase of cotton stock and consolidation of the captive power plant debt.

Net long term debt/Operational EBITDA for FY14 stands at 1.66x and the Net debt/ Operational EBITDA stands at 2.89x. Dividend announced at Rs. 3 per equity share.

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Welspun India

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