Textiles, Apparels and Accessories company Welspun India announced Q3FY22 results: EBITDA up by 11% at Rs 11,781 mn YTD. Q3 EBITDA at Rs 3,305 mn, impacted primarily by surge in the raw material and input costs. PAT up by 34% YTD at Rs 5,490 mn. Q3 PAT at Rs 1,324 after exceptional loss of Rs 359 mn EPS up by 35% YTD at Rs 5.52, Q3 FY22 EPS at Rs 1.34 Rs 25,420 mn (December 2021) vs. Rs 25,332 mn (Sep 2021), increasing by Rs 88 mn Excluding Flooring, Net debt stood at Rs 17,743 mn (December 2021) vs Rs 17,699 mn (Sep 2021) YTD 9MFY22 the Company has spent Rs 4,534 mn towards Capex Speaking about the performance, Mr. B.K. Goenka, Chairman, Welspun Group, said “Global textile industry is going through transformation phase both in demand and supply side. The de-risking strategy of shift in sourcing goods from more than one country is anticipated to benefit major industry players. Furthermore, banning of Xinjiang Cotton (accounting for 20% of world’s cotton production) by the US brings additional advantage for the country and players like Welspun. Welspun holds very strong market share of ~25% and ~14% in the US terry towel and US bed linen markets, respectively, with an overall 22% market share in the US home textile export market. In Q3, we witnessed further strong performance in Home Textile with 19% growth YoY and home textile segment alone is poised to cross $1 bn revenues in this fiscal year. Welspun is re-defining itself from a manufacturer to become the FMCG of home textiles. In this direction, the domestic Retail business successfully crossed Rs 100 Cr mark in this quarter, clocking a quarterly revenue of Rs 127 Cr, growing by 55%. Our branded and E-commerce businesses have also grown by 45% in the quarter, accounting for 18% of the total revenues, up from 15% share last year. The US market led in this growth, with E-Comm and Licenced brands business growing by over 66% YoY. Our growth in the quarter has been broad based with the Flooring business also almost doubling, growing by 95% YoY. Increasing input costs, rising energy prices and global logistics issues continued to weigh on the margin front. At Welspun, we are making our best possible efforts to control these adversities and counter it through our strong in-house manufacturing capabilities, well-recognized branding, and innovative product offerings. Welspun India, being a socially responsible company, has been actively progressing across multiple Environmental, Social, and Governance (ESG) criteria and I am delighted to share that the Company has been rated by Dow Jones Sustainability Index (DJSI), securing an ESG rating of 48, which is 62% higher than the average industry score. Adding to this achievement, Welspun India has also been felicitated with the prestigious National Water Award 2020 by the Ministry of Jal Shakti and has won the first prize in the ‘Best Industry Category’ for its cutting-edge sewage treatment plant in the drought prone Kutch district.” Result PDF
Conference Call with Welspun India Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
Financial highlights Achieved highest ever quarterly Revenues of Rs 25,014 mn EBITDA up 5% YoY at Rs 4,237 mn and margin stood at 17% Core business EBITDA was Rs 4,135mn and Margin stood at 17.4% PAT up 10.8% YoY at Rs 1,991 mn Rs 25,014 mn, registering a growth of 26% YoY, Bath Linen sales volume grew by 16% YoY, Bed Linen sales volume grew by 4% YoY and Rugs and carpets sales volume grew by 29% YoY EBITDA: Rs 4,237 mn, up 5% YoY & EBITDA Margin was at 17% Core business EBITDA stood at Rs 4,135mn & EBITDA Margin stood at 17.4% Speaking about the performance, Mr. B.K. Goenka, Chairman, Welspun Group, said “Global recovery post pandemic has been strongly helped by policy support and vaccination drive. Our markets like US and UK have been showing strong consumer spending. In India, economy is coming out of pandemic led slowdown with strong demand supported by monetary policies and fiscal stimulus from government. In this backdrop, Welspun delivered a strong second quarter, achieving highest revenues, growing in double digits and stepping up profitability sequentially. Large parts of our business continued to gain market share and penetration. Calibrated price increases and laser sharp focus on savings helped us protect the margins while overcoming the global supply chain disruptions. Textile sector in the country has also got its due share in the form of PLI scheme and textile parks which will drive benefits for all stakeholders. The continued challenges in the form of high input costs, increasing energy prices and global logistic issues need to be navigated cautiously. At Welspun India, we are well placed to capture the growth opportunity with innovative product offerings, judicious capital deployment and optimum utilization of our distribution network. I am delighted to share that Welspun is one of the first Indian companies to get US FDA nod for 3 ply surgical mask which is a testament of our commitment to quality and innovation. We continue to make significant progress in our sustainability journey. Spun, our home grown brand which employees over 2200 women, was recognized by World Economic Forum, as one of the top 100 Corporate Social Ready enterprises globally. We are committed to channelizing our energy and resources to maximize shareholder value and deliver long-term sustainable growth.” Result PDF