India : Strong volumes drive Q3FY15 sales 22% at Welpsun India

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Strong volumes drive Q3FY15 sales 22% at Welpsun India

30
Jan '15

Driven by strong volume growth in sheets and rugs, revenue at home textiles major Welpsun India surged 22 per cent year on year in the third fiscal quarter ending December 31, 2014.

Welspun said sales drove up to Rs 13,459 million in the third quarter of fiscal 2015 as against Rs. 11,029 million in the corresponding quarter of fiscal 2014, a massive jump of 22 per cent.

Operational EBITDA in the reporting quarter zoomed 42 per cent at Rs. 3,400 million compared to Rs. 2,402 million in the prior year quarter.

Operational EBITDA margin too was higher at 25.3 per cent vis-à-vis 21.8 per cent, on account of commissioning of the 170,000 spindle spinning mill, leading to higher vertical integration.

Profit after tax after minorities and associates stood at Rs. 1,436 million from Rs. 1,095 million from a year ago quarter, a stupendous growth of 31 per cent.

As of December 31, 2014, net worth of Welpsun India stood at Rs. 13,357 million.

During the quarter, Welspun commissioned India’s largest spinning facility under one roof in Anjar, which positions it on the path of expansion and growth through backward integration and automation.

According to Welspun, out of a total investment plan of Rs. 2,500 crores, 50 per cent has already been invested, with the rest to be invested over the next 18-24 months.

Half of the investments are towards vertical integration and the rest will be towards automation or to increase production capacity.

Chairman BK Goenka said, “We continue on our growth journey achieving new milestones and scaling new heights.”

“Our focus over the next few quarters will be to increase our branded sales, as well as to improve our share of sales from innovative products,” he added.

On its future outlook, it said that the US economy is expected to continue on its growth trajectory in the coming year.

Welspun added, “New home-sales data is indicating a strengthening housing market while consumer confidence has been hitting multi-year highs.

“While consumer confidence in Europe is edging higher, it is expected to get a further boost from falling oil prices and the ECB stimulus, which would improve real household spending power.”

“The Indian economy is expected to grow faster in the coming years as economic reforms gather pace,” the home textiles major informed.

It sees the outlook for Indian cotton textiles, especially home textiles to continue to be positive, as the Indian home textile industry continues to gain market share from competing countries. (AR)

Fibre2fashion News Desk - India

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