Welspun India, part of the $2.3 billion Welspun Group, has announced that its revenue increased by 8.7 per cent to Rs 17,572 million in the last quarter of fiscal 2017, as compared to Rs 16,162 million in the same period last year. This growth is due to double digit growth in volumes in terry towels and rugs and higher mix of innovative and branded products.
Operating EBITDA in Q4 FY17 was at Rs 3,829 million, down from Rs 4,353 million in Q4 FY16. Operating EBITDA margin at 21.8 per cent (26.9 per cent in Q4 FY16) was adversely affected due to sudden spurt in raw material and energy cost. Finance cost (net) stood at Rs 392 million, 35 per cent lower YoY (Rs 598 million) on account of reduction in base rate and higher quantum of debt under Gujarat textile scheme.
The company's profit before tax (before exceptional) stood at Rs 2,190 million compared to the Q4 FY16 figure of Rs 2,882 million. Its net worth stands at Rs 23,971 million as on March 31, 2017, while the net debt stands at Rs 30,389 million as on March 31, 2017 (Rs 31,090 million at end-FY16) implying a net debt/equity of 1.27x (1.58x at end-FY16).
For the third year in a row, the company generated positive free cash flows after capex and in spite of the one-time exceptional item in FY17.
In FY17, the share of innovative products stands at 36 per cent, compared to 34 per cent in FY16, while branded sales share stood at 16 per cent 3 per cent up from FY16. Domestic retail sales of the company recorded a 21 per cent growth in FY17.
The total capital expenditure has been Rs 7.2 billion in FY17. Annual capacity as on date has been enhanced to 72,000 MT in towels (from 60,000 MT at end-FY16), 90 million metres in bed linen (from 72 million metres at end-FY16) and 10 million square metres in rugs & carpets (from 8 million square metres at end-FY16).
"The industry is facing significant head winds in terms of raw material and energy cost pressures as well as rupee appreciation, which will keep the margins under pressure during FY18. The company is well placed to face this challenge with its differentiation strategy of innovation, branding and sustainability, which it has been pursuing for quite some time now. The company has also taken a few initial steps towards its entry into advanced textiles and flooring solutions," said BK Goenka, chairman, Welspun Group. (KD)
Source:Fibre2Fashion News Desk – India