Welspun India Ltd reports total income of ₹19,790 mn in Q1 FY23

Welspun’s flooring business’ revenue in Q1 FY23 was up by 39.6 per cent year-over-year (YoY) and the home textile branded business recorded a growth of 39 per cent YoY and 34 per cent quarter-on-quarter (QoQ). The company registered a significant growth of 113 per cent YoY in domestic retail business in the same period.

The company’s EBITDA was at ₹1,736 million with margin at 8.8 per cent in Q1 FY23. Core business EBITDA stood at ₹1,716 million and EBITDA margin stood at 9.3 per cent, Welspun said in a media release.

The net debt of the company was at ₹21,392 million as on June 30, 2022 as opposed to ₹22,289 million as on March 31, 2022. Net debt excluding flooring business stood at ₹13,034 million as on June 30, 2022 compared to ₹13,989 million as on March 31, 2022.

The company has increased nationwide footprint of Brand ‘Welspun’ to over 7,833 outlets and 495 towns.

The capital light expansion at Anjar which was started last year has been completed with increase in towel capacity by 7 per cent to 90,000 MTPA. The balance flooring & advanced textiles capex will conclude towards the end of the second quarter of FY23.

In Q1 FY23, Welspun spent ₹852 million towards capex.

Speaking about the performance, B K Goenka, chairman, Welspun Group, said: “We have delivered a relatively healthy operating performance in the face of an unusually tough macroeconomic environment characterised by unprecedented high input costs, rising inflation, and subdued consumer sentiments.

“During the quarter under review our domestic retail business, which has power brands like ‘Welspun’ and ‘Spaces’, again registered one of the highest quarterly revenues. In addition, all our brands continue to grow in excess of 40 per cent internationally. This operating milestone, achieved when overall demand conditions are seen to have been relatively soft, validates our strategy to invest in brands and direct-to-consumer (D2C) initiatives as growth drivers of the future.

“We have been strengthening our balance sheet by reducing our net debt over the past few years and that trend continued in the quarter under review with a further reduction. We continued our focus on embedding environment, social and governance in all facets of our activities. It is heartening to see Welspun receiving industry leading scores in CRISIL’s sustainability yearbook 2022, which reaffirms our efforts in this direction.”

Fibre2Fashion News Desk (KD)