Welspun India gains post Q4 results

The stock moved higher by 5% to Rs 105 on the BSE in otherwise weak market in noon deal.

Welspun India has moved higher by 5% to Rs 105 on the BSE in an otherwise weak market in noon deal after the company reported 20% year on year (YoY) growth in consolidated net profit at Rs 193 crore for the fourth quarter ended March 2016 (Q4FY16). The textile company had registered a profit of Rs 161 crore in the March 2015 quarter.

Revenue grew 19% YoY at Rs 1,628 crore driven by higher volumes across products and higher mix of innovative and branded products.

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Operating earnings before interest, taxes, depreciation and amortization (EBITDA) margin up 74 basis points at 26.0% (vs. 25.2% in Q4 FY15), mainly on account of higher share of innovative and branded products, Welspun India said in a statement.

Speaking about the performance, Mr. B.K. Goenka, Chairman, Welspun Group, said, “Another successful year, record sales & profitability, made possible by delivering unique experiences through innovation and branding. In the coming year, our focus will be on increasing revenue from the domestic market and profitability through branded and innovative products.”

The stock hit a low of Rs 98 before the announcements of Q4 results. The trading volumes on the counter jumped nearly four-fold with a combined 3.71 million shares changed hands on the BSE and NSE till 01:48 pm.