In the second quarter of fiscal 2014-15, revenues and EBITDA surged 22% and 21%, respectively, from a year ago quarter, at Welspun India, a part of the $3 billion BK Goenka led, Welspun Group.
Steered by strong volume growth, revenue at Welspun India climbed 22% to Rs.14,135 million in the second quarter of fiscal 2014-15, compared with Rs.11,589 million in the second quarter of 2013-14.
At the same time, operational EBITDA at Rs.3,169 million, shot up by 25% from Rs.2,540 million in the corresponding quarter of the previous fiscal year.
Not to be left behind, operational EBITDA margin too was marginally higher at 22.4% in the reporting quarter from 21.9% in the prior fiscal year quarter.
However, depreciation skyrocketed 50% year-on-year to Rs.717 million in the period under review, from newly commissioned projects due to a new depreciation policy.
Finance cost at the third globally biggest home textiles producer, stood at Rs.731 million, expanding by 23% from a year ago quarter, from higher working capital interest cost and also discontinuation of interest subvention.
Second quarter of 2014-15 profit after tax amounted to Rs.1,299 million, up 11% from Rs.1,166 million, from same quarter of 2013-14.
At the end of second quarter of current fiscal, Welspun India's net worth stood at Rs.12,764 million and gross debt at Rs. 29,143 million, down from Rs.30,293 million at end of previous fiscal second quarter.
Welspun informed that the modernisation, expansion and vertical integration project is half-way through, on which it has spent capex of Rs.12 billion, by the end of the reporting quarter.
The 170,000 spindles and 140 looms, which are part of this plan, have started commercial operations and the remaining is expected to be completed over the next two years at an expense of Rs.13 billion.
Chairman, BK Goenka said, “We have increased focus on our domestic as well as global brands, which should further improve our position in the coming years and create long-term value for shareholders.” (AR)
