India-based home textile manufacturer, Welspun India has recently reported a rise of 22 per cent in revenue amounting to Rs. 1,790 crores compared to Rs. 1,469 crores in the corresponding period last year, for the second quarter ended September 30, 2016.
In the reporting period, the company achieved its highest EBIDTA of Rs. 457 crores, up by 13 per cent. The PBT stood at Rs. 299 crores, registering a jump of 14 per cent as compared to corresponding period last year. For the half year ended September 30, 2016, Welspun noted a growth of 18 per cent to Rs. 3,383 crores from last year’s Rs. 2,863 crores. The EBIDTA totalled Rs. 898 crores, which translates into 12 per cent growth on a comparable basis. The company’s PBT stood at Rs. 593 crores, witnessing a surge of 14 per cent.
Speaking about the performance, B.K. Goenka, Chairman, Welspun Group said, “We have registered a double-digit revenue growth in spite of the recent challenges which have provided important lessons for us. In the long run, we believe these developments will make us stronger. We are taking all necessary steps to transform Welspun India into an institution which is system-driven and will accelerate the journey to achieve global leadership.”
It may be mentioned that Welspun has appointed EY as external consultants to thoroughly examine the supply chain. As a vertically integrated player, the company is moving towards producing all the Egyptian cotton products in-house i.e., from procuring cotton to the finished product. The slew of steps to be initiated include deployment of a dedicated resource in Egypt for sourcing of Egyptian cotton, increasing third party assurances such as Gold Seal from Cotton Egypt Association, vendor audit and DNA tests.
Welspun has filed 27 global patents of which nine have already been granted. Its best-selling innovation Hygrocotton® has done well and the latest one Nanocore™ has received Asthma and Allergy Free Certification for bedding products in the US. A third innovation Drylon® has achieved good traction with the launch of new varieties. It is also increasing its global footprint with new stores in the US, China, Middle East and in the UK.