Latest news with #WelspunLiving
Mint
3 days ago
- Business
- Mint
Welspun Group sees strong US business despite US tariffs, expands into water management
On Thursday morning, Welspun Corp stock was up 10% on highest volumes of shares traded on any day in the past twelve months. The stock closed at its 52-week peak of ₹ 895 on the BSE. The company, which makes steel pipes for transporting oil, had just announced its Q4FY25 and FY25 results, reporting a 67% increase in consolidated net profits over the previous financial year despite a 19% fall in annual revenues. The sudden confidence of investors should come as a surprise. There was some serious uncertainty surrounding its business after President Donald Trump imposed a 25% tariff on steel imports into the US in early March. Welspun, which has a pipe making factory in the US, imported steel as raw material, which made the landed cost of the metal highest compared to anywhere else in the world. It looked like Welspun Corp was staring at a prolonged downturn. A month after Trump announced tariffs, the stock was down 15%. B.K. Goenka, chairman of Welspun Corp, says: 'Trump's big support for the local US oil industry is seeing a surge of investments in the sector. There is a huge demand for pipes, causing their prices to increase and we are doubling down on the business.' Welspun disclosed that it has an order book of ₹ 19,500 crore, while its US steel mill is booked for the next 8 quarters. It is not just in the pipe business that Goenka is exuding confidence. As luck would have it, yet another company of the $5 billion Welspun group has its business fortunes linked to the US market. Welspun Living, which is the largest maker of bath towels in the world, accounts for every fifth towel sold in the US. Just like steel, garments exports to the US were also affected by Trump's new rules, which saw import tariffs increase from 4.57% to 30.57%, according to textile industry portal Fibre2Fashion. In its Q4FY25 results announced on Thursday, Welspun Living said that its home textiles grew at 1.7% year-on-year (y-o-y) in the quarter, even though the growth stood at 10.8% in FY25. The company's total revenue rose 1.2% to ₹ 2,648 crore in Q4FY25. For the full fiscal year, it rose at 8.9% to ₹ 10,697 crore. A research report by institutional equities firm Systematix titled Indian Textiles, published after India signed its free trade agreement FTA with the UK in the first week of May, says: 'The FTA is poised to bring far-reaching benefits to India's textile and apparel sector. The agreement can double bilateral trade between the two countries.' The sector's export accounted for 12% of UK's $15.3 billion imports from India and the report expects a 9% increase in Welspun's export to the UK, boosted by the agreement. In many ways, the two Welspun firms have come to be good examples of how Indian companies are working the way around Trump's tariffs, which have got the attention of senior business leaders, policy makers and investors in the past two months. 'Immediately, we will face some issues in our export to the US because of tariffs but we must understand that the main focus of the US is to reduce its reliance on China. To that effect, the real China+1 effect is going to play out only now. In the coming years, we expect our exports to the US to grow 20%,' says Goenka. Now, the biggest chunk of Chinese exports to the US markets come from synthetic textile and garment, while Indian exports are based on cotton. 'We may not gain from Chinese exports going down as much as getting our shares from countries like Bangladesh and Sri Lanka which also face higher tariffs in the US. We have better access to capital and that will help us scale up faster," Goenka says. "India has a unique advantage in home textiles as well-run companies like Welspun Living have easier access to capital markets and also locally-made cotton. It is placed better than competitors like Pakistan and Turkey in terms of US tariffs," says Arvind Singhal, founder and chairman of retail industry consultancy KSA Technopak. Singhal, until last year, was a board member of Welspun Living. On the other hand, since the price of oil pipe will be directly linked to that of steel, Goenka expects to pass any price increase to customers. 'The price of US steel has already gone up after tariffs were announced and there is going to be parity to imports,' he says. In the case of Welspun Corp, there are other levers too by which Goenka is trying to generate value. To deploy some of its cash, Goenka took control of plastics storage and furniture maker Sintex after the company filed for bankruptcy. The interest in Sintex stems from Goenka's interest in the water business, which he thinks will grow into a substantial one in the coming years. 'Starting from treatment, whether fresh water treatment or desalination, then transporting, and having a small loft tank, pipes, tap and small effluent sewage treatment can all be done by Sintex as a package unit," says Goenka. 'In FY26, we will do about ₹ 800 crore of revenue but the profits won't by much because of old losses or restructuring. But, we have 10% margin in the business.' "Welspun has diversified beyond its core offerings into building materials and plastic segments. Such expansion enables it to align with favourable dynamics across the industrial, consumer and residential markets," wrote Shweta Dikshit, analyst with Institutional equities firm Systematix in a May 19 note on the company. The firm recommended a buy on the stock with a target price of ₹ 1,006. Elsewhere, Goenka is focusing on reducing his costs in the textile business and is implementing a solar power project in Anjar, Gujarat. That project was commissioned with an intention to ensure that 80% of the power for the textile plant came from renewable sources in FY26 and 100% by FY30. 'Connectivity to the grid is still an issue. We will commission a part of it by September this year and the rest by December," Goenka says. The group will eventually have more solar energy in the renewable portfolio as a new company Welspun Energy has been incorporated for the business. In pilot stages are plans to produce green ammonia and green hydrogen. 'It may look like green hydrogen is not viable today but that was the case with solar energy too in 2008-09 when it was ₹ 18 a unit. The same will happen to hydrogen and it is the energy of the future," he says.
Business Standard
5 days ago
- Business
- Business Standard
Welspun Living slides as Q4 PAT decline 10% YoY to Rs 132 cr
Welspun Living dropped 6.60% to Rs 137.95 after the company reported a 9.71% decrease in consolidated net profit of Rs 131.82 crore in Q4 FY25 as against Rs 146 crore in Q4 FY24. Revenue rose by 2.74% year-over-year to Rs 2,645.90 crore during the period under review. EBITDA for the fourth quarter of FY25 was Rs 318 crore as compared with Rs 400 crore in the corresponding period last fiscal year. EBITDA margin reduced to 12% in Q4 FY25 as against 15.3% in Q4 FY25. On the segmental front, the Home Textile business reported revenue of Rs 2,452.56 crore, up 1.27% YoY, while the Flooring business recorded revenue of Rs 195.76 crore in Q4 FY25, reflecting a de-growth of 8.05%. Net debt stood at Rs 1,603 crore as of March 2024, higher by Rs 248 crore compared to Rs 1,354 crore in March 2023, but lower by Rs 56 crore from Rs 1,658 crore reported in December 2024. On a full-year basis, the companys net profit slipped 6.15% to Rs 639.16 crore on an 8.94% rise in net sales to Rs 10,545.09 crore in FY25 over FY24. On capex front the company said In Q4FY25, we spent ₹106 cr towards capex, majorly towards the Towel project at Anjar. FY25 capital outlay stood at Rs 701 cr On the capex front, the company stated that it spent Rs 106 crore in Q4 FY25, primarily towards the Towel project at Anjar. The total capital outlay for FY25 stood at Rs 701 crore. B.K. Goenka, chairman, Welspun Group, said, Despite evolving global trade dynamics and tariff uncertainties, Welspun continues to lead with resilience, agility, and innovationbringing clarity to complexity and turning disruption into opportunity. FY25 was a defining year as the company crossed the Rs 10,000 crore revenue mark, with consolidated revenues of Rs 10,697 crore, grew by 8.9% and a strong 10.8% growth in home textile exports. Our emerging businesses which are future growth engine contribute approximately 30% of revenues, reinforcing the power of our diversified model. We are equally focused on scaling our domestic consumer business which grew 5.1% in FY25, with the Welspun brand reaching deeper into households and SPACES evolving into a complete home lifestyle offering. Christy continues to build its reputation as a global luxury brand with focus on profitable growth and enhanced presence in markets beyond UK. Strategically, our ESG leadership has been validated with a score of 83 in the 2024 S&P Global CSA ranking us 1st in India and 4th globally in the Textile, Apparel & Luxury Goods categorya strong endorsement of our commitment to sustainable value creation. Meanwhile, the companys board has recommended a dividend of Rs 1.70 per equity share for FY 2024-25, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The dividend will be paid to shareholders holding equity shares as of the record date, 27 June 2025. Welspun Living (WLL) is a global leader in home textiles. With a distribution network in more than 60 countries and world-class manufacturing facilities in India, Welspun is a strategic partner with top global retailers. WLL is driven by its differentiation strategy based on branding, innovation, and sustainability. On 22 September 2023, Welspun India Limited changed its name to Welspun Living Limited.
Yahoo
5 days ago
- Business
- Yahoo
Welspun Living Ltd (BOM:514162) Q4 2025 Earnings Call Highlights: Navigating Growth Amid Global ...
Consolidated Revenue: INR10,697 crores for FY25, an 8.8% year-on-year growth. Q4 Revenue: INR2,648 crores, up by 1.2% year-on-year. EBITDA Margin: 13.6% for FY25; Q4 EBITDA margin at 12%. Profit After Tax (PAT): INR639 crores for FY25, compared to INR681 crores last year. EPS: INR6.70 per share for FY25, down by 5% from the previous year. Net Debt: INR1,603 crores, an increase of INR248 crores from last year. Home Textile Revenue: INR8,804 crores for FY25, up by 10.8% year-on-year. Domestic Retail Business: INR605 crores for FY25, a growth of over 5%. Flooring Revenue: INR727 crores for FY25, a decrease of 7% year-on-year. Advanced Textile Revenue: INR562 crores for FY25, growing by 7.8%. CapEx: INR701 crores for FY25, with a planned CapEx of INR300 crores for FY26. Dividend Distribution: Proposed 170% dividend for FY25, amounting to INR163 crores. Warning! GuruFocus has detected 3 Warning Signs with BOM:514162. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Welspun Living Ltd (BOM:514162) surpassed the INR10,000 crores revenue mark, achieving a consolidated revenue of INR10,693 crores, an 8.8% year-on-year growth. Emerging businesses contribute approximately 30% to the total revenue, showcasing a strong diversified portfolio. The company achieved a significant milestone in sustainability, securing a total ESG score of 83 in the 2024 S&P Global Corporate Sustainability Assessment, ranking fourth globally in its category. Welspun Living's domestic retail business grew over 5% in FY25, reaching INR605 crores, with strong growth momentum in the e-commerce segment, which grew 100% in FY25. The company is expanding its product portfolio for domestic markets through acquisitions, such as acquiring 84.3% equity in a home furnishings company, expected to reach a revenue of INR100-plus crores in three years. The EBITDA margin for Q4 stood at 12%, down 20% year-on-year, primarily due to lower offtake than expected. Profit after tax for the quarter decreased to INR132 crores from INR146 crores year-on-year, with a full-year PAT of INR639 crores, down from INR681 crores. The flooring business recorded a revenue of INR727 crores, declining by 7% in FY25, facing challenges due to US tariffs and other uncertainties. The company experienced margin compression in Q4 due to cautious order patterns from customers ahead of tariff implementation. Welspun Living Ltd (BOM:514162) is unable to provide firm guidance for the current financial year due to prevailing global headwinds and uncertainties. Q: What caused the sharp degrowth in the branded segment of home textiles this quarter, and what is the growth outlook for this segment? A: In India, the branded segment grew annually by 3% despite economic challenges, with a 16% growth in B2C in Q4. The company is targeting a 30% growth in the domestic market this year. The global branded segment remained flat due to order shifts from Q4 to Q1, but overall, the branded business grew by 21% in Q4. Q: Why is the flooring segment struggling despite easing supply chain issues? A: The flooring segment was impacted by tariff uncertainties, leading to cautious order patterns. However, there is optimism due to the China Plus One strategy and partnerships with home improvement chains. Domestic flooring grew by 12% this year, and the company is confident about future growth. Q: How are US tariffs affecting margins and what strategies are in place to mitigate these impacts? A: The US tariffs have introduced uncertainty, but the company is working closely with customers and consulting with a big four firm to minimize impacts. The company has diversified its revenue mix, reducing US dependency from 80% to 60-65%, and is focusing on growth in other regions like the UK and Europe. Q: What is the impact of the UK Free Trade Agreement (FTA) on Welspun's business, and are there opportunities in flooring in the UK? A: The UK FTA presents a significant opportunity, leveling the playing field with Pakistan and Bangladesh. The company is seeing positive retailer engagement and expects growth in towels, sheets, and flooring. The FTA will enhance competitiveness and market share in the UK and Europe. Q: What are the company's plans for capacity expansion to meet new demand in the EU? A: Welspun is increasing its capacity by 10% with a new plant expected to start soon, and additional capacity by Q3 to Q4. This expansion will support growth in all markets, including the UK, leveraging the opportunities presented by the FTA. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Standard
5 days ago
- Business
- Business Standard
Welspun Living consolidated net profit declines 9.71% in the March 2025 quarter
Sales rise 2.74% to Rs 2645.90 crore Net profit of Welspun Living declined 9.71% to Rs 131.82 crore in the quarter ended March 2025 as against Rs 146.00 crore during the previous quarter ended March 2024. Sales rose 2.74% to Rs 2645.90 crore in the quarter ended March 2025 as against Rs 2575.24 crore during the previous quarter ended March 2024. For the full year,net profit declined 6.16% to Rs 639.16 crore in the year ended March 2025 as against Rs 681.10 crore during the previous year ended March 2024. Sales rose 8.95% to Rs 10545.09 crore in the year ended March 2025 as against Rs 9679.24 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 2645.902575.24 3 10545.099679.24 9 OPM % 11.9313.93 - 12.3114.14 - PBDT 260.93348.37 -25 1233.571361.44 -9 PBT 168.09252.14 -33 860.18966.95 -11 NP 131.82146.00 -10 639.16681.10 -6
Business Standard
07-05-2025
- Business
- Business Standard
Textile stocks surge as India-UK seal landmark free trade agreement
Textile stocks surged on Wednesday after India and the United Kingdom officially concluded negotiations on a landmark Free Trade Agreement (FTA), aimed at eliminating trade barriers and boosting bilateral commerce. Major textile counters rallied sharply in response: Gokaldas Exports jumped 6.63%, KPR Mill rose 6.45%, Welspun Living climbed 6.34%, Indo Count Industries gained 6.09%, Vardhman Textiles added 4.93% and Arvind was up 1.91%. At the core of this investor enthusiasm is the scrapping of the 812% UK import duty on textiles and garments under the FTAputting Indian exporters on par with Bangladesh and giving them a 12% tariff advantage over China. This is expected to enhance India's competitiveness in the UK market, a key destination for apparel and textile exports. Analysts are optimistic, noting that the deal could help Indian firms double their revenue contributions from the UK by FY27. Beyond apparel, the agreement is also expected to benefit auto components and chemical exports, with total Indian exports to the UK projected to rise significantly by 2027. The India-UK FTA is the first major trade pact between the two nations and the bilateral trade is expected to reach $120 billion by 2030. A standout feature of the pact is the "double contribution convention", which prevents Indian professionals in the UK from paying social security contributions in both countries. This move is being hailed as a "game-changer" for Indian workers, making overseas assignments more financially viable.
