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Welspun India achieves record quarterly revenue and sustainable profits

Oct 25, 2023

By: BlinkX Research Team

Welspun Living Ltd., a renowned player in Home Textiles, and a part of the esteemed Welspun Group, has unveiled its Q2-FY24 results.

Commenting on the remarkable performance, Mr. B.K. Goenka, Chairman of the Welspun Group, expressed his pride in the company's achievements. He noted that despite challenging global economic conditions and subdued consumer sentiments, the company has reported its highest-ever consolidated quarterly revenues for Q2FY24. This achievement highlights the company's consistent profitability in recent quarters.

Notably, Welspun's flooring business has shown strong performance, reporting its highest quarterly revenues and margins. All emerging businesses, including Global Brands, Domestic Consumer, Advanced Textiles, and Flooring, displayed robust growth, with a 28% increase in Q2FY24.

On the domestic front, Welspun demonstrated resilience during the quarter, even in the face of a weak retail market sentiment. The 'Welspun' brand strengthened its leadership position and continued to be the most widely distributed Home Textile brand in the country, with a presence in 600+ towns and 15,511+ outlets.

They are taking significant steps toward sustainable and responsible business practices, including entering a joint venture to provide 47MW of Solar & Wind energy at their Anjar facility by 2026, a key milestone in their journey to achieve 100% renewable energy by 2030.

Key Highlights of Q2FY24:

• Achieved highest-ever quarterly revenues of ₹25,424 million, a remarkable 19% YoY growth.
• EBITDA for Q2 FY24 increased by 158% YoY, reaching ₹3,913 million @ 15.4%.
• PAT for Q2 FY24 reached ₹1,967 million, growing over 22 times YoY.
• Net Debt reduced to ₹15,734 million as of September 30, 2023, down by ₹2,419 million from June 30, 2023.
• ROCE% at 14.6% (annualized) compared to 5.7% in FY23.
• The flooring segment also recorded its highest-ever quarterly revenue of ₹2,426 million, showing an impressive 52% YoY growth.
• Flooring EBITDA for Q2 FY24 reached 8.3%, growing by 5 times YoY.

Welspun India's remarkable results underscore its strength and resilience in the ever-evolving market.