Welspun India Ltd - Broad-based strong performance continues in Q1FY22

Welspun India Ltd. (WIL), a global leader in Home textiles and part of the US$ 2.7 billion Welspun Group, announced Q1FY22 results today.

Key Highlights

- Achieved highest ever quarterly Total Income of ₹ 22,272 mn
- EBITDA up 93.3% YoY at ₹ 4,598 mn and margin stood at 20.6%
- Core business EBITDA was ₹ 4,805 mn and Margin stood at 22.6%
- Net Debt (Excl. Flooring) reduced by ₹ 1,376 mn and stood at ₹ 14,839 mn
- Buyback for an amount of ₹ 2462 Mn (including tax) at a price of ₹ 120 per share completed

Speaking about the performance, Mr. B.K. Goenka, Chairman, Welspun Group, said, "The strong growth momentum which started in H2 of last FY continued in current fiscal year also. I am thankful to the Welspun team for their perseverance and resilience as they navigated through this challenging period and delivered broad-based, market-leading volume growth supported by our agile business model. The wellbeing of our workforce is integral to Welspun and we are committed towards vaccinating 100% of our people across manufacturing plants by 15th August 2021.

I thank the Govt of India for providing long term stability to the textile sector in the country and am confident that this will be a game-changer for the entire value chain and will drive benefits for all stakeholders.

The prevailing global logistic challenges being a possible impediment, Welspun India is well placed to capture the growth opportunity on the back of strong customer relationships, superior distribution network, thriving global ecommerce channel and brands and digitalization. Identifying these opportunities well in advance, we have deployed capital in businesses which has helped us to withstand disruptions and will generate strong growth in future.

ESG is now integral to all business strategies at Welspun with direct influence on Managerial remuneration. I am happy to share with you that our group company, Welspun Flooring Limited has become the first company to achieve certification under SCS' new Zero Waste Standard which shows that our efforts towards sustainable growth are bearing fruits.

We continue to work on strategic initiatives to maximize shareholder value and deliver long-term sustainable growth.

Total Income:

- ₹ 22,272 mn, registering a growth of 83.2% YoY

Bath Linen sales volume grew by 51% YoY, Bed Linen sales volume grew by 114% YoY and Rugs and carpets sales volume grew by 219% YoY

EBITDA:

- ₹ 4,598 mn, up 93% YoY and 28.4% QoQ & EBITDA Margin was at 20.6%, an improvement of 106 bps YoY and 417 bps QoQ

- Core business EBITDA stood at ₹ 4,805 mn & EBITDA Margin stood at 22.6%

PAT:

- ₹ 2,175 mn, up 343% YoY and 67% QoQ

Net Debt:

- ₹ 22,495 mn vs. ₹ 23,327 mn (March 2021); reduction of ₹ 832 mn

- Excluding flooring Net debt stood at ₹ 14,839 mn vs. ₹ 16,215 mn (March 2021); reduction of ₹ 1,376 mn

Shares of WELSPUN INDIA LTD. was last trading in BSE at Rs. 141.6 as compared to the previous close of Rs. 134.35. The total number of shares traded during the day was 655066 in over 13035 trades.

The stock hit an intraday high of Rs. 142.8 and intraday low of 131.05. The net turnover during the day was Rs. 90793244.

Source : Equity Bulls

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