India's Welspun Living's Q2 FY25 revenue at $349 mn with 15.5% growth

Within its core segments, the textile business achieved ₹27,128 million (~$322.63 million) in revenue for Q2 FY25, growing by 15.3 per cent from the previous year, and amassed ₹51,001 million (~$606.52 million) for H1 FY25, a 16.2 per cent increase. The flooring business posted Q2 FY25 revenue of ₹2,498 million (~$29.7 million), a 2.9 per cent year-on-year growth, and ₹4,776 million (~$56.80 million) for H1 FY25, up 2.1 per cent year-on-year.

Emerging businesses of Global Brands, Domestic Consumer, Advanced Textiles and Flooring grew 22 per cent in Q2 FY25. The domestic consumer business recorded a 20 per cent growth, it said in a financial statement.

Welspun’s consolidated EBITDA for Q2 FY25 reached ₹4,206 million (~$50.02 million) at a margin of 14.3 per cent, showing a 7.5 per cent year-on-year increase, while for H1 FY25, EBITDA stood at ₹8,140 million at a 14.7 per cent margin, up by 11.1 per cent year-on-year.

The textile business achieved earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ₹3,742 million with a 13.8 per cent margin in Q2 FY25, marking a 4.1 per cent year-on-year growth, and ₹7,226 million at a 14.2 per cent margin for H1 FY25, a 7.6 per cent increase. Additionally, the flooring business registered an EBITDA of ₹220 million with an 8.8 per cent margin in Q2 FY25, representing a 9.5 per cent year-on-year growth, and ₹430 million at a 9.0 per cent margin for H1 FY25, growing 12.1 per cent year-on-year.

The company’s profit after tax (PAT), after accounting for minority interests, amounted to ₹2,010 million (~$23.90 million) in Q2 FY25, a 2.2 per cent increase year-on-year, with H1 FY25 PAT reaching ₹3,865 million, up 7.9 per cent. Earnings per share (EPS) rose to ₹2.10 in Q2 FY25 from ₹2.04 in Q2 FY24, a 3 per cent increase.

As of the end of Q2 FY25, Welspun’s net debt rose to ₹18,323 million, up from ₹15,734 million in September 2023, an increase of ₹2,589 million, and from ₹15,620 million in June 2024, an increase of ₹2,703 million. This increase in debt was driven by capital expenditure, share buybacks, and heightened investments in working capital.

This year, Welspun launched a joint venture for a 4.6 MW solar energy project at its Telangana facility, a significant step toward achieving its goal of 100 per cent renewable energy use by 2030. Innovation remains a strong driver of growth, contributing nearly 23 per cent to total sales, the statement added.

Capital expenditure in Q2FY25 amounted to ₹2,860 million (~$34.02 million), primarily directed towards towel and pillow production projects at Anjar, India, and in the United States. This investment aligns with the company’s long-term vision of meeting rising consumer demand with expanded capacity and efficient production facilities.

B K Goenka, chairman, Welspun Group, said, “Welspun Living’s commitment and focus to sustainably grow all its businesses has seen the company reporting its highest ever consolidated quarterly revenues in Q2 FY25, growing by 15.5 per cent, in the face of relatively adverse global conditions owing to Red Sea challenges. Emerging businesses of Global Brands, Domestic consumer, Advance textile and Flooring are continuing to flourish from strength to strength and grew 22 per cent in Q2 FY25, with flooring business reporting highest quarterly revenues. Domestic consumer business continued showing resilience during the quarter despite muted retail market sentiments and ‘Welspun’ brand strengthened its leadership position of being the most widely distributed home textile brand, growing by 20 per cent during the quarter. ESG is imbedded in every aspect of operations at Welspun, keeping us ahead of our peers globally in responsible and sustainable practices.”

Fibre2Fashion News Desk (SG)