Welspun Living (WELSPUNLIV) Q3 24/25 earnings summary

Executive summary

• Consolidated Q3 FY25 revenue reached ₹25,277 mn (INR 2,528 crores), up 3% year-on-year; YTD revenue at ₹80,491 mn (INR 8,049 crores), up 11.7% year-on-year.

• Home textile exports grew 6% YoY in Q3 FY25 and 14% YTD, with strong performance in the US, Europe, UK, and RoW.

• EBITDA for Q3 FY25 was ₹3,185 mn (INR 319 crores) at a margin of 12.6%; YTD EBITDA margin stood at 14.1%.

• PAT for Q3 FY25 was ₹1,208 mn (INR 121 crores), down 32% YoY; YTD PAT was ₹5,073 mn (INR 507 crores), down 5.2% YoY.

• The company is on track to achieve its FY27 vision, focusing on market leadership, scaling emerging businesses, and ESG leadership.

Financial highlights

• Q3 EBITDA margin declined by 300 bps YoY due to one-time promotional programs and higher input costs.

• Contribution margin was impacted by 1% from product mix changes and 0.4% from higher ocean freight.

• Net debt at ₹16,584 mn (INR 1,658 crores) as of Dec 2024, up YoY but down sequentially.

• Interest costs increased to INR 62 crores YTD from INR 42 crores last year, driven by higher CapEx and working capital.

• EPS for Q3 FY25 was ₹1.27, down 31% YoY; YTD EPS at ₹5.30, down 4%.

Outlook and guidance

• Revenue growth guidance for FY25 maintained at 10%-12%; YTD growth at 11.7%.

• Full-year EBITDA margin guidance revised to about 14% due to one-off costs in Q2 and Q3.

• Flooring business expected to recover in Q4 and grow 20%-25% from next year.

• Working capital reduction planned, with net debt targeted to fall to ₹14,000-15,000 mn (INR 1,400-1,500 crores) by year-end.

• Innovation sales contributed ~24% of total sales YTD.