Welspun India posts total revenue of ₹19,041 mn in Q3 FY23

The company’s EBITDA in Q3 FY23 was ₹2,286 million, with an EBITDA margin of 12 per cent. Profit after tax (PAT) was ₹424 million, a decline of 68 per cent as compared to Q3 FY22. EPS was at ₹0.43, as compared to 1.34 in Q3 FY22.

On a quarter-over-quarter (QoQ) basis, EBITDA margin increased by 491 basis points (bps), and for home textile, EBITDA margin increased by 539 bps. Increase in margin was mainly due to operational efficiencies achieved due to reduction in cotton and freight cost, the company said in a press release.

As on December 31, 2022, net debt was ₹19,092 million versus ₹25,420 million as on December 31, 2021, a reduction of ₹6,328 million YoY.

In the first nine months (9M) of FY23, the company’s revenue was ₹60,196 million. Textile business’ revenue was ₹56,210 million in 9M FY23.

Welspun’s EBITDA in 9M FY23 was ₹5,538 million, with an EBITDA margin of 9.2 per cent, while the PAT was ₹734 million, and EPS was ₹0.74.

The company registered significant growth of 39 per cent YoY in domestic consumer business in 9M FY23 with revenue of ₹4,276 million. Welspun brand is growing in excess of 50 per cent and it remains the highest distributed home textile brand in the country.

Branded business as percentage of overall business grew from 13 per cent in FY20 to around 15 per cent in FY21 and FY22 to 22 per cent in 9M FY23.

Out of the emerging businesses, retail and advanced textile recorded growth of 19 per cent year-to-date (YTD), contributing 19 per cent of total sales in 9M FY23.

In line with its journey towards carbon neutrality, the company is planning to establish a 30 MW solar power plant at its Anjar facility with an investment of ₹2 billion. The power plant is expected to be operational by Q1 FY24 and about ₹500-600 million is expected to be incurred in FY23, which would be funded through issuance of green bonds/debentures.

“The global environment remained challenging during Q3 FY23 due to inflation and slowdown across our key markets. Despite the challenges, our domestic consumer business continued to consolidate its leadership position with ‘Welspun’ brand footprint at over 10,600-plus outlets and clocking its highest ever quarterly revenues during the quarter, growing in excess of 39 per cent YoY YTD, taking us closer to our vision of ‘Har Ghar Welspun’. The company’s connect and trust it enjoys with its consumers is also evident in the growth of our global branded business, which crossed $100 million this quarter,” said BK Goenka, chairman, Welspun Group.

Welspun India Ltd has also announced its brand licensing agreement with The Walt Disney Company for the Europe, Middle East, Africa (EMEA) region. The license will give Welspun the rights to design, develop, manufacture, and distribute complete range of home textiles products leveraging Disney’s vast franchises and characters across Disney, Pixar, Marvel, and Lucas brands.

“Welspun has seen tremendous success in North American markets from our brand licensing business. Disney is yet another step to take our innovative offerings to a wider consumer base in the EMEA region, so that consumers can re-imagine their living spaces together with Welspun and Disney,” said Keyur Parekh, Welspun India’s president and global head.

Fibre2Fashion News Desk (DP)