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Revenue: INR2,936 crore, up 16% year-on-year and 13% quarter-on-quarter.
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EBITDA: INR421 crore, up 7.5% year-on-year and 7% quarter-on-quarter.
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EBITDA Margin: 14.3% for Q2 FY25.
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Profit After Tax (PAT): INR201 crore, up 2.2% year-on-year.
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EPS: INR2.1 per share, up 3% year-on-year.
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Net Debt: INR1,832 crore, increased by INR270 crore from June '24.
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Home Textile Revenue: INR2,713 crore, up 15.3% year-on-year.
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Flooring Revenue: INR250 crore, up 3% year-on-year.
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CapEx: INR286 crore for Q2 FY25, with a total of INR492 crore for H1 FY25.
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Export Growth: Overall exports grew by 18% in Q2 year-on-year.
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Domestic Retail Revenue: INR159 crore, with a growth of 10% year-on-year.
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Emerging Businesses Growth: 22% year-on-year in Q2 FY25.
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Advanced Textile Revenue: INR148 crore, up 18% year-on-year.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Welspun Living Ltd (BOM:514162) reported its highest ever quarterly revenue of INR2,936 crore, marking a 16% year-on-year growth.
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The company achieved a high capacity utilization rate of over 90% in its terry towel, bed sheets, and rugs units.
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Exports grew by 18% in Q2, driven by strong orders from retailers and distributors across product segments.
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Emerging businesses, including domestic consumer business and global brands, grew by 22% year-on-year, contributing 33% to total revenue.
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Welspun Living Ltd (BOM:514162) continues to focus on sustainability, achieving a significant improvement in its EcoVadis ESG rating.
Negative Points
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The company faced challenges due to Red Sea issues, including rising container rates and non-availability of containers, impacting profitability.
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Higher ocean freight costs, doubling from the previous year, led to increased warehousing and transportation expenses.
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Domestic retail demand remained sluggish, with only a 10% growth in the domestic retail business.
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The flooring business experienced modest growth of 3% year-on-year, affected by logistical challenges.
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Net debt increased by INR270 crore due to share buyback and increased working capital requirements.
Q & A Highlights
Q: After all our CapEx, what will be the debt after we are done with the CapEx? A: Sanjay Gupta, CFO, stated that they expect the net debt to be in the range of INR 0 crore to INR 200 crore by financial year '28, including repayments.
Q: Can you provide a breakdown of the CapEx and how much has been done to date? A: Sanjay Gupta, CFO, mentioned that INR 492 crore has been spent till H1, mainly on the towel project at Anjar and the pillow project in Ohio. The additional CapEx of INR 709 crore for bed sheet and towel capacities will be incurred over FY26 and FY27.