Welspun Living (WELSPUNLIV) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 17% year-on-year to ₹25,885 million, with EBITDA of ₹3,935 million at a 15.2% margin and PAT of ₹1,855 million, up 15% year-on-year and 27% sequentially.

• Home Textile exports grew 19% year-on-year with a 17% EBITDA margin, while Advanced Textile business grew 24% year-on-year.

• Flooring business revenue reached ₹2,278 million, with its highest EBITDA margin of 9.2% and capacity utilization at 64%.

• Net debt reduced by ₹2,533 million year-on-year to ₹15,620 million, though up sequentially due to capex and working capital.

• Board approved a buyback of up to ₹2,784 million at ₹220 per share; promoters to participate fully.

Financial highlights

• Q1 FY25 consolidated revenue: ₹25,885 million (+16.9% YoY), EBITDA: ₹3,935 million (+15.2% YoY), PAT: ₹1,855 million (+14.8% YoY), EPS: ₹1.93.

• Cash profit for the quarter was ₹2,897 million, up 14.8% YoY.

• Net worth increased to ₹47,112 million from ₹40,302 million YoY.

• Net debt as of June 30, 2024: ₹15,620 million, up from ₹13,542 million in March 2024 due to capex and working capital.

• ROCE stood at 14.1%.

Outlook and guidance

• Management maintains 12% revenue growth and 15%-15.5% EBITDA margin guidance for FY25.

• Focus on emerging businesses, innovation, and sustainability, with capacity expansion in India and the US.

• Capex of ₹2,067 million in Q1 FY25 targeted towel and pillow projects.

• Flooring business expected to grow 20%-25% in FY25; domestic flooring grew 15% YoY in Q1.

• Cautiously optimistic due to global economic and geopolitical uncertainties.