Welspun India soars 13%, hits 52-week high on 7x YoY jump in Q1 PAT

Shares of Welspun India soared 13 per cent to hit 52-week high of Rs 113 per share in Monday’s intra-day trade, after the textile company’s total income grew 11.9 per cent year-on-year (YoY) to Rs 2,214 crore in the April-June quarter of fiscal year 2023-24 (Q1FY24).

So far this calendar year 2023 (CY23), the stock has rallied over 45 per cent, as against an 8 per cent jump in the S&P BSE Sensex.

The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 96.7 per cent YoY to Rs 341 crore. Ebitda margin, too, expanded 665 basis points (bps) YoY to 15.4 per cent in the recently concluded quarter, as against 8.8 per cent in Q1FY23.

Profit-after-tax (PAT), meanwhile, grew more than 7x YoY to Rs 161 crore in Q1FY24 from Rs 22 crore, in the year-ago period.

Segment-wise, home textile revenue climbed 10 per cent YoY to Rs 2,037 crore in the June quarter, flooring business revenue jumped 33 per cent YoY to Rs 225 crore.

The management hailed the June quarter results, saying growth was observed across all emerging businesses.

“The company continues to deliver strong performance in Q1FY24 with sequentially higher margins, continuing the trend since the last few quarters, delivering highest Ebitda margin in the last seven quarters,” said BK Goenka, Chairman, Welspun Group.

Moreover, the board approved merger of Welspun Flooring and other subsidiaries with Welspun India subject to regulatory approvals.

Welspun India, part of $2.3 billion Welspun Group, is a global leader in home textiles. With a distribution network in more than 50 countries and world class manufacturing facilities in India, Welspun is strategic partners with top global retailers.