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

S Jaishankar. Pic: Shutterstock/Naveen Macro

Textiles | On 20th Oct 2021

India, UAE, US, Israel hold 1st quad meeting, discuss trade, big data

India, the United States, the United Arab Emirates and Israel...

Pic: Shutterstock

Retail | On 20th Oct 2021

Sept US retail sales up as goods spending preferred over services: NRF

US retail sales rose again in September as worries about the COVID-19 ...

Pic: DOST-PTRI Research and Development

Textiles | On 20th Oct 2021

Philippines scientists develop greener tech to produce bamboo fibres

Scientists in Philippines have developed greener technologies to...

Interviews View All

Textile Industry, Head Honchos

Textile Industry
Head Honchos

Increase foreign exchange and create jobs

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchain is not a silver bullet for each and every problem in supply...

International apparel brands, Head honchos

International apparel brands
Head honchos

Launched first collection at onset of Covid

Noemi Sanchez,

Noemi Sanchez

Established since 1846, Evlox is a specialised denim manufacturer with its ...

Bharat Ahuja,

Bharat Ahuja

A mono store brand, <b>Bharat Ahuja's</b> Desire Design Studio has emerged ...

Barry Goodwin,

Barry Goodwin

UK based Amba Projex Ltd designs, manufactures, and installs industrial...

Shaan Sethi, Jaanuu

Shaan Sethi
Jaanuu

Jaanuu, a vertically integrated e-commerce company, has reimagined the...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Daniel Odermatt, Ventile

Daniel Odermatt
Ventile

Ventile is a registered trademark used to brand a special high-quality...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

<b>Ruma Devi i</b>s a jet-setting promoter of artisans who has empowered...

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

Leave your Comments


October 2021

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


Advanced Search