InvestorQ : How do you see the Sep-20 quarter results of Welspun India, the textile manufacturer?
Tisha Malhotra made post

How do you see the Sep-20 quarter results of Welspun India, the textile manufacturer?

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Moii Chavate answered.
3 weeks ago
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Welspun India, one of India’s largest manufacturers and exporter of towels, reported 8.15% growth in sales for the Sep-20 quarter at Rs.1,974 crore. Operating profits from business for Sep-20 quarter were down 2.1% at Rs.271 crore.

For the Sep-20 quarter, net profits were down 7.26% at Rs.187.90 crore. As a result, the operating margins of Welspun India for the Sep-20 quarter were 140 bps lower at 13.73%. At the same time, the NPM for the quarter was lower by 155 bps at 9.52%.

While home textiles tend to be a victim of spending downturns, the pick-up is evident. The post-COVID recovery could be seen from the fact that the home textiles segment grew 6% yoy but a whopping 62% on a sequential basis. Incidentally, Welspun India also recorded the highest bed sheet volumes during this particular quarter only.

There were some positive developments on the financial risk front too. The net debt of the company during the Sep-20 quarter fell by Rs.623 crore. This improved coverage ratios for Welspun India. Welspun expects its hygiene related products to see a good demand in coming quarters with a greater emphasis on work-from-home models.

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