Welspun Living (WELSPUNLIV) Q2 24/25 earnings summary

Executive summary

• Achieved record consolidated quarterly revenue of ₹29,360 million in Q2 FY25, up 16% YoY and 13% QoQ, driven by strong export demand, high capacity utilization, and growth in core and emerging businesses.

• EBITDA reached ₹4,206 million (14.3% margin), up 7.5% YoY and 7% QoQ, with PAT at ₹2,010 million, up 2.2% YoY; EPS for Q2 at ₹2.10, up 3% YoY.

• Flooring business posted record quarterly revenue, with global brands and domestic consumer/emerging businesses growing over 22% YoY.

• Exports grew 18% in Q2 and 19% in H1 YoY, with India maintaining dominant market share in US home textile imports.

• Achieved EcoVadis Silver Award, placing in the top 15% globally for ESG.

Financial highlights

• H1 FY25 revenue at ₹55,245 million, up 16% YoY; H1 EBITDA at ₹8,140 million (14.7% margin), up 11.1% YoY.

• Q2 PAT at ₹2,010 million, up 2.2% YoY; H1 PAT at ₹3,865 million, up 7.9% YoY.

• Net debt increased to ₹18,323 million as of September 2024, mainly due to capex, buyback, and working capital needs.

• Forex realization for Q2 averaged 84.29 INR/USD, up from 83.35 last year.

• Net worth at ₹45,575 million, up from ₹41,975 million YoY.

Outlook and guidance

• Maintaining FY25 guidance of 10-12% revenue growth and 15-16.5% EBITDA margin.

• Major expansion at Anjar with ₹1,050 crore capex, targeting new towel and bedsheet capacity, to be completed in phases by FY27.

• Company targets 100% renewable energy by 2030, with a new JV for 4.6MW solar at Telangana facility.

• Cautiously optimistic for H2 FY25 amid ongoing geopolitical and logistics risks.