Welspun India jumps after strong Q1 earnings

Welspun India jumped 10.87% to Rs 58.15 at 13:49 IST on BSE after net profit jumped 42% to Rs 89.90 crore on 25% increase in revenues to Rs 944.60 crore in Q1 June 2013 over Q4 March 2013.

The result was announced after market hours on Wednesday, 7 August 2013.

Meanwhile, the S&P BSE Sensex was up 82.01 points, or 0.44%, to 18,746.89.

On BSE, 13,060 shares were traded in the counter as against an average daily volume of 6,163 shares in the past one quarter.

The stock hit a high of Rs 60.50 and a low of Rs 52.10 so far during the day. The stock had hit a 52-week low of Rs 46.50 on Tuesday, 6 August 2013. The stock had hit a 52-week high of Rs 82.80 on 1 February 2013.

The stock had underperformed the market over the past one month till 7 August 2013, falling 9.49% compared with the Sensex's 4.26% fall. The scrip had also underperformed the market in past one quarter, sliding 15.54% as against Sensex's 6.15% fall.

The small-cap company has an equity capital of Rs 100.11 crore. Face value per share is Rs 10.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 66% to Rs 222.90 crore in Q1 June 2013 over Q4 March 2013. EBITDA margin grew to 23.6% in Q1 June 2013 compared with 17.7% in Q4 March 2013.

Welspun India's net profit jumped 75% to Rs 89.90 crore on 3% fall in revenues to Rs 944.60 crore in Q1 June 2013 over Q1 June 2012. EBITDA rose 31% to Rs 222.90 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin grew to 23.6% in Q1 June 2013 compared with 17.5% in Q1 June 2012.

As on 30 June 2013, the company's net long term debt stood at Rs 1079.90 crore implying a net long term debt/equity of 1.16x.

Speaking about the performance, Mr. B.K. Goenka, Chairman, Welspun India, said, "Our reorganisation efforts - bringing the textile business under one roof and focussing on our core competencies - stand vindicated by the results we have been reporting over the last few quarters. The vertical integration project, once completed, will lead to further improvement in profitability. The captive power plant is ramping up generation, thus lowering power costs further and contributing to better profitability. We will continue our focus on innovation, strengthening customer relationships and improving supply chain efficiency which will help us become the top home textile company in the world."

Welspun India, part of $3.5 billion Welspun Group, is among the top three home textile manufacturers in the world and the largest home textile company in Asia. With a distribution network in 32 countries and manufacturing facilities in India, it is the largest exporters of home textile products from India. Supplier to 14 of Top 30 global retailers, the company has marquee clients like Wal-Mart, JC Penny, Target and Macy's to name a few.

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