Driven by strong volume growth and surge in domestic sales, revenues in the three months to June 30, 2015 at Indian home textiles major and BK Goenka led Welpsun India Ltd soared 18 per cent year on year.
In the first quarter of fiscal 2015, Welpsun India reported revenues at Rs 1388.5 crore as against Rs 1177.3 crore in the same quarter of fiscal 2015, up 18 per cent.
According to a BSE filing, Welspun India posted higher revenues driven by strong volume growth and also a 35.6 per cent year over year growth in domestic sales.
Operational EBITDA for the reporting quarter drove up 32 per cent at Rs 359.8 crore versus Rs 272.7 crore in the prior fiscal first quarter.
Operational EBITDA margin too was higher at 25.9 per cent compared to 23.2 per cent, mainly on account of higher vertical integration and larger share of innovative products.
Since Welpsun has started availing benefits under the Gujarat textile policy, leading to a reduction in interest expense, due to which, finance costs were down 17 per cent from last fiscal's first quarter to Rs 59.3 crore.
However, depreciation was higher at Rs 79.3 crore as against Rs 68.6 crore in the first quarter of fiscal 2015, primarily from capitalisation of the vertical integration of projects.
Profit after tax surged 55 per cent to Rs 163.2 crore in the quarter under review compared to Rs 105.0 crore in the corresponding quarter of previous fiscal.
The net worth of Welspun India stood at Rs 1579 crore as on June 30, 2015 and at the end of the quarter; gross debt totaled Rs 3021.7 crore down from Rs 3085.1 crore at June 30, 2014.
The gross long term debt at the end of the first quarter amounted to Rs 1936.3 crore vis-à-vis Rs 2081.7 crore at end of first quarter of earlier fiscal.
Welpsun said it continues to generate positive free cash flows during the quarter after meeting capex requirements on account of strong operating profits and working capital reduction.
It also added that the capital expenditure is as per schedule and that balance investment of around Rs 110 crore is expected over the next 12-15 months.
“This capex will entail modernisation, automation and capacity enhancement for towels and sheets as well as routine maintenance at its sites in Anjar and Vapi, both in Gujarat,” the home textiles producer informed.
Chairman BK Goenka said, “Our ongoing initiatives with respect to own brands as well as innovative products have resulted in another strong quarter of operational and financial performance.”
“We will keep striving to capitalise on newer opportunities, while continuing to build a sustainable and progressive community, thus delivering value to all our stakeholders,” he too added.
