Shares of world’s largest home textiles manufacturer gained 16% in the day’s trade after it announced robust quarter ended September (Q2FY24) results with 2305 percent jump in its Net Profits YoY.
At the day’s closing the shares of Welspun Living, previously known as Welspun India were trading at Rs. 140.40 per share, up 9.82 percent from its previous day close price and its market capitalization is Rs. 13,828 Crores.
As per the company’s filing, Welspun Living has announced their quarterly ended september(Q2FY24) results and it is as follows
Its revenue from operation grew 18.71 percent YoY from Rs. 2,113.46 Crores in Q2FY23 to Rs. 2509.08 Crores in Q2FY24 and it grew 14.88 percent QoQ from Rs. 2,184.05 Crores in Q1FY24 to Rs. 2509.08 Crores in Q2FY24.
Its Net profit grew 2305.88 percent YoY from Rs. 8.33 Crore in Q2FY23 to Rs. 200.41 Crores in Q2FY24 and it grew 23.15 percent QoQ from Rs. 162.73 Crores in Q1FY24 to Rs. 200.41 Crores in Q2FY24.
In addition to this, its board of directors approved investment not exceeding Rs. 56.40 Crores in a Special Purpose Vehicle (SPV) for supply of 47 MW Renewable Energy Round-The-Clock (RE-RTC) basis for its Anjar operations at the most competitive rates, which will make the Company’s Anjar Unit about 80% RE by the financial year 2026 with a reduction in the cost of power.
As per the company’s financial statements its revenue decreased by 13.08 percent from Rs. 9,311.47 Crores in FY22 to Rs. 8,093.76 Crores in FY23, accompanied by decreasing profits of Rs. 601.17 Crores to Rs. 198.83 Crores.
It has reported a return on equity (ROE) of 5.03 percent and a return on capital employed (ROCE) of 6.35 percent, its profitability ratios have declined over the years and it is making decent returns on its equity and capital employed.
According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold 70.50 percent stake, the Domestic Institutional Investors hold 5.71 percent and the Foreign Institutional Investors (FII) hold 6.34 percent.
Welspun India is one of the largest home textile manufacturers in the world, it offers a wide spectrum of Home & Technical textile products and Flooring solutions.
Written by: Bharath K.S
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