Moneycontrol
Last Updated : Feb 02, 2016 04:46 PM IST | Source: Moneycontrol.com

Welspun India Q3 profit jumps 21%, stock split gets board nod

Revenue rose 10.7 percent to Rs 1,490.4 crore in quarter ended December 2015 compared to Rs 1,346 crore in year-ago period, driven by higher volumes across products, higher mix of innovative products and favourable exchange movement.

 
 
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Moneycontrol Bureau


Home textile company Welspun India's third quarter consolidated profit increased 21 percent year-on-year to Rs 174.08 crore, aided by revenue, operating profit and lower finance cost.


Revenue rose 10.7 percent to Rs 1,490.4 crore in quarter ended December 2015 compared to Rs 1,346 crore in year-ago period, driven by higher volumes across products, higher mix of innovative products and favourable exchange movement.


The company said domestic retail sales continued to witness robust growth and year-to-date growth stood at 52 percent.


Operating profit (earnings before interest, tax, depreciation and amortisation) grew by 17.8 percent year-on-year to Rs 400.5 crore and margin expanded by 200 basis points to 27 percent, mainly on account of higher share of innovative and branded products.


Finance cost in Q3 declined 27.5 percent to Rs 59.2 crore on yearly basis on account of reduction in base rate, benefits under Gujarat Textile Policy and interest equalisation scheme announced by the government.


The company said depreciation was higher YoY at Rs 99.7 crore (against Rs 91.8 crore in Q3 FY15), primarily on account of the part-capitalisation of ongoing modernisation and expansion projects.


Tax expenses shot up 120.6 percent year-on-year to Rs 81.4 crore in Q3.


Its board of directors has approved stock split in 10:1 ratio (face value of equity shares will be revised from Rs 10 to Re 1 a share).


The capacity for towels was 55,000 MTPA and for bed linen was 72 million metres during the quarter, it said.

At 13:51 hours IST, the scrip of Welspun India was quoting at Rs 885.75, up Rs 40.30, or 4.77 percent on the BSE.

First Published on Feb 2, 2016 02:07 pm
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