Welspun India’s turnover up by 45.2%

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Welspun India’s turnover up by 45.2%

Welspun India’s turnover up by 45.2%, EBITDA (without MTM ) UP BY 66%. Acquired 85% in Christy, UK’s number 1 Towel brand

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Welspun India Limited (WIL), the flagship company of $ 1 billion Welspun Group, reported a 45.2% percent rise in sales at Rs. 1989 million in Q1-07 as compared to Rs. 1370 million in Q1-06. EBITDA (without MTM) grew by 66% to Rs 475 mn, Operational EBITDA margins improved significantly to 23% in Q1-07 as compared to 15.9% in Q1-06 

Reported EBITDA stood at Rs. 375 mn, an increase of only 11.2%, adversely affected due to marked to market due to Forex fluctuations (Rupee depreciated by Rs 1.33/$ in Q1-07.) impact of Rs.(100) Mn. Overall cash Profit (PAT +Depreciation) increased by 4.7% to Rs 220 mn. 

Business:

In Q1-FY-07, the towel division continued to do well, with almost 85% utilization level. While for sheeting, this was the first significant quarter for the business, contributing Rs.505 mn to the top line and a healthy bottom line. 

Project:

The Phase II Anjar project is proceeding as per management plans. Moreover withdrawal of TUF has not affected the project since all funds are fully sanctioned (part disbursed) under TUF.

Acquisition - Inorganic Growth

In this quarter, WIL acquired an 85% interest in CHT Holdings Limited, the ultimate holding company of the UK's leading towel brand Christy. Founded in 1851, Christy is the world's oldest towel manufacturer and is the UK's leading towel brand with an annual turnover of GBP 35mn (INR 3000m). Christy invented the first loom to mechanically weave what remains today the basis of the modern towel and is the sole supplier of the towels to  world famous Wimbledon Tennis Championship. The acquisition will bring significant strategic benefits to both the companies in terms of new market and products, sharing of knowledge base, and many more 

Management outlook

For the towel division the company has been able to move almost 85% of its supplies on the replenishment mode, which in conjunction with the strong order book position will enable sustained sales growth. Similarly, despite sheeting being a new business line, the company has experienced significant interest from the market and enjoys good growth prospects in the forthcoming quarters. 

Mr. B.K Goenka, Vice Chairman and Managing Director of the Welspun Group said on the occasion "This has indeed been a significant quarter for both sheeting and towels. The acquisition of Christy has further strengthened Welspun's global vision. We are booked to capacity and the fluctuation in Forex has not dampened our spirits." 

Sourced From :Sampark Public Relations Pvt Ltd