 "Welspun India")
Shares of Welspun India hit a 52-week high of Rs 104.90, zooming 20 per cent on the BSE in Tuesday's intra-day trade, lifted by heavy volumes. Last week, the company’s board had approved buyback proposal at Rs 120 per share via tender offer.
The stock surpassed its previous high of Rs 89.95, touched on April 28, 2023. At 02:07 PM, it was quoting 15 per cent higher at Rs 100.80, as compared to 0.48 per cent rise in the S&P BSE Sensex. Trading volumes on the counter jumped over 15-fold with a combined 43.56 million equity shares having changed hands on the NSE and BSE.
The board of Welspun India approved a proposal for purchase of 16.25 million equity shares worth Rs 195 crore through a tender offer. The company, engaged in home textiles business, said it will buyback up to 16.2 million shares at an offer price of Rs 120.
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Meanwhile, for the January-March quarter (Q4FY23), Welspun India's consolidated net profit more-than-double at Rs 125.4 crore, as against Rs 52.2 crore in Q4FY22. Ebitda (earnings before interest, taxes, depreciation, and amortization) margin improved 361 bps to 14.6 per cent from 11.0 per cent in the year-ago quarter. Total income, however, declined 2.3 per cent YoY at Rs 2,196 crore.
FY23, though a challenging year due to historical high input costs and demand slowdown in key global markets, ended with a positive note with all the businesses showing improved performance in Q4FY23, the management said.
The management further added that the company's relentless efforts to innovate through value engineering and cost rationalization across board helped achieve the highest Ebitda margin in six quarters in Q4FY23. All emerging businesses, including flooring business, have given superior results in Q4FY23, growing by 24 per cent, it added.
