Welspun India has declared quarterly earnings with consolidated sales reaching Rs 1,012.68 crores with net profit of Rs 104.96 crores compared to Rs 849.9 crores in sales and Rs 89.87 crores during the year-ago quarter. Now, the company has decided to focus on the domestic market to maintain earnings and profit levels. The company reported 21 per cent growth on the topline and about 24 per cent improvement in EBITDA, while margins increased 0.5 point higher as compared to same quarter, last year.
Welspun’s debt was at Rs 2,700 crores at the end of FY14. This quarter, the net debt remained the same despite the capital expenditure plan undertaken by the company. The company plans to invest around Rs 2,500 crores over fiscal years 2014-15 and 2015-16. Since China is facing labour issues with wage rates tripling over the last four-five years, Indian cotton textile producing companies like Welspun are at an advantage.
Last year, promoters increased their stake by 5 per cent in the company and they are eyeing to raise it to 75 per cent. As a company, Welspun has made large investment in creating capacities across the entire textile manufacturing, from spinning to weaving to dyeing, processing and finishing.
