Welspun India records Rs 150.24 cr net profit in Q3 FY17

The company earned a revenue of Rs 15,009 million in the third quarter of this fiscal, recording a 3.9 per cent YoY growth compared to last year’s revenue of Rs 14,451 million. This growth was mainly driven by higher volumes in terry towels and rugs and higher mix of innovative and branded products, said Welspun in a BSE listing.

Operating EBITDA of the company stood at Rs 3,463 million as compared to Rs 4,070 million in Q3 FY16. As for the finance cost, it was Rs 480 million, that is, 19 per cent lower YoY from last year’s Rs 593 million, on account of reduction in base rate and higher quantum of debt under Gujarat textile scheme.

Depreciation was higher YoY at Rs 1,305 million as against Rs 989 million in Q3 FY16, primarily on account of the capitalisation of ongoing modernisation and expansion projects.

Profit before tax (before exceptional) stood at Rs 1,888 million, while net worth stands at Rs 21,692 million as on December 31, 2016. Net debt stands at Rs 28,008 million compared to Rs 25,275 million at the end of FY16.

“We continue to work on new growth avenues, which will help us achieve our Vision 2020. Our focus areas include the domestic market through our brands; new products such as flooring solutions; and new channels such as e-commerce,” said BK Goenka, chairman, Welspun Group.

For FY17, the capital expenditure planned by the company is Rs 8 billion. Out of this, Rs 1.1 billion of capex has been invested during the quarter and Rs 5.6 billion during 9MFY17.

Annual capacity has been enhanced to 72,000 MT in towels from 60,000 MT at the end of FY16 and 90 million metres in bed linen from 72 million metres during the same period in the last financial year. Capacity for rugs and carpets is expected to reach 10 million square metres by the end of FY17 from 8 million square metres at the end of FY16. (KD)

Fibre2Fashion News Desk – India