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Q1FY23

Domestic Retail and Global Brands businesses record

robust growth in Q1FY'23

Mumbai, July 27, 2022: Welspun India Ltd. (WIL), a global leader in Home Textiles and part of the US$

2.3 billion Welspun Group, announced Q1/FY23 results today.

Management Comment:

Speaking about the performance, Mr. B.K. Goenka, Chairman, Welspun Group, said "We have delivered a relatively healthy operating performance in the face of an unusually tough macroeconomic environment characterised by unprecedented high input costs, rising inflation, and subdued consumer sentiments.During the quarter under review our Domestic Retail business, which has power brands like 'Welspun' and 'SPACES', again registered one of its highest quarterly revenue.In addition, all our brands continue to grow in excess of 40% internationally. This operating milestone, achieved when overall demand conditions are seen to have been relatively soft, validates our strategy to invest in Brands and direct-to-consumer(D2C) initiatives as growth drivers of the future.We have been strengthening our balance sheet by reducing our net debt over the past few years and that trend continued in the quarter under review with a further reduction.We continued our focus on embedding Environment, Social and Governance in all facets of our activities.It is heartening to see Welspun receiving industry leading scores in CRISIL's sustainability year book 2022,which reaffirms our efforts in this direction."

Key Highlights

  • Total Income of ₹ 19,790 mn in Q1 FY23
  • Home Textiles revenue at ₹ 18521 mn
  • Flooring revenue up by 40% YoY to ₹ 1694 mn
  • EBITDA at ₹ 1,736 mn with margin at 8.8%

Key Financial highlights of the Quarter (Consolidated):

(₹ Million)

Financial Summary

Q1FY23

Q1FY22

YoY%*

FY22

FY21

YoY%

Total Income

19,790

22,272

(6.7%)

93,773

74,080

26.6%

EBITDA

1,736

4,598

(51.1 %)

14,246

14,198

0.3%

EBITDA Margin

8.8%

20.6%

(795 bps)

15.2%

19.2%

(397 bps)

PAT after Minorities

224

2,175

(84.5%)

6,012

5,397

11.4%

*Q1FY22 numbers adjusted for ROSCTL of Q4FY21 of Rs. 1,050 mn

NSE: WELSPUNIND | Bloomberg: WLSI:IN | Reuters: WLSP.NS

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Q1FY23

Segmental Details

Q1FY23

Q1FY22

YoY%*

Q4FY22

QoQ%

FY22

FY21

YoY%

Home Textile:

Revenue

18,521

21,284

(8.5%)

20,730

(10.7%)

87,911

71,283

23.3%

EBITDA

1,716

4,805

(54.3%)

2,404

(28.6%)

14,111

14,863

(5.1%)

EBITDA Margin (%)

9.3%

22.6%

(929 bps)

11.6%

(233 bps)

16.1%

20.9%

(480 bps)

Flooring:

Revenue

1,694

1,214

39.6%

1,892

(10.5%)

6,611

3,187

107.4%

EBITDA

21

(263)

-

(29)

-

(143)

(996)

-

EBITDA Margin (%)

1.2%

(21.7%)

-

(1.5%)

-

(2.2%)

(31.3%)

-

*Q1FY22 numbers adjusted for ROSCTL of Q4FY21 of Rs. 1,050 mn

(₹ Million)

Balance Sheet Summary

30-June-22

31-Mar-22

Net Worth

39,666

39,717

Gross Debt

29,426

31,884

-

Short Term Loans

17,264

19,742

- Long Term Loans (excl. Flooring Debt)

4,340

4,298

Net Debt excluding Flooring Debt

13,034

13,989

-

Net Flooring Debt

8,358

8,300

Net Debt

21,392

22,289

Net fixed assets (incl. CWIP)

39,927

39,881

Net current assets (excl. cash & cash equiv.)

24,714

24,839

Capital Employed

76,802

79,053

Net Debt/EBITDA

1.82x

1.56x

Net Debt/Equity

0.54x

0.56x

  • Total Income:
    1. Total revenue at ₹ 19,790 mn in Q1 FY 23
      • Textile business revenue at ₹ 18521 mn
      • Flooring business revenue at ₹ 1694 mn
  • EBITDA:
    1. ₹ 1,736 mn in Q1FY23 with an EBITDA Margin of 8.8%
    1. Core business EBITDA stood at ₹ 1716 mn and EBITDA Margin stood at 9.3%
  • PAT (after minority and exceptional loss):
    1. PAT at ₹ 224 mn in Q1FY23

NSE: WELSPUNIND | Bloomberg: WLSI:IN | Reuters: WLSP.NS

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  • EPS:

Q1FY23

    1. EPS at ₹ 0.23 in Q1 FY23
  • Net Debt:
    1. Net Debt at ₹ 21,392 mn as on 30th June 2022 vs. ₹ 22,289 mn as on 31st March 2022
  1. Net debt excluding Flooring business stood at ₹ 13,034 mn as on 30th June 2022 vs ₹ 13,989 mn as on 31st March 2022

Key Business Updates:

  • Flooring revenue up by 39.6%% YoY to ₹ 1,694 mn
  • The company registered significant growth of 113% YoY in Domestic Retail business in Q1 FY23
  • Home Textile Branded Business recorded growth of 39% YoY & 34% QoQ
  • With an aim to be "Har Ghar Welspun", the company has increased nationwide footprint of Brand
    'Welspun' to 7,833+ outlets and 495+ towns, reinforcing it to be the Number 1 distributed HT brand in India.

Capacity Enhancement:

  • The capital light expansion at Anjar which were started last year has been completed with increase in Towel capacity by 7% to 90000 MTPA.
  • The balance Flooring & Advanced Textiles capex will conclude towards the end of Q2FY23.

Capex:

  • In Q1 FY 23 the Company has spent ₹ 852 mn towards Capex

Awards and Accolades:

  • CRISIL Sustainability Yearbook 2022: Rated "Strong" with highest ESG score within Textiles sector as well as in each of the three dimensions of Environment, Social and Governance.
  • Nasscom AI Gamechangers 2022 - 'Innovator' Award: Welspun's Innovative Artificial Intelligence project of Towel counting and Defect detection using AI ML based vision system, an industry first.
  • Dun & Bradstreet: Best performing textile company, 2nd year in a row.
  • Texprocil: Platinum Trophy for Highest Global Exports, 12 years in a row.
  • Texprocil: Gold Trophy for Special Achievement in Madeups for Sustainability Initiatives.

About Welspun India Ltd:

Welspun India Ltd (WIL), part of $2.3 Bn Welspun Group, is a global leader in Home textiles.With a distribution network in more than 50 countries and world class manufacturing facilities in India, Welspun is strategic partners with top global retailers.WIL is driven by its differentiation strategy based on Branding, Innovation and Sustainability.

NSE: WELSPUNIND | Bloomberg: WLSI:IN | Reuters: WLSP.NS

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About Welspun Group:

Q1FY23

A US$ 2.3 billion enterprise, Welspun Group is one of India's fastest growing conglomerates with businesses in Line Pipes, Home Textiles, Infrastructure, Warehousing, Oil & Gas, Advanced Textiles and Floorings.The Group has a strong foothold in over 50 countries with 26,000 employees and over 100,000 shareholders. Headquartered in Mumbai, Welspun Group's manufacturing facilities are strategically located in India, USA and Saudi Arabia. Known for technological and operational excellence, the Group has established a leadership position in the Line Pipe & Home Textiles sectors globally.Its clients include most of the Fortune 100 companies.

For further information please visit www.welspunindia.comor contact:

Mr. Sanjay Gupta (sanjay_gupta1 @welspun.com) / Mr. Abhinandan Singh (abhinandan_singh@welspun.com)

DISCLAIMER:

The information in this release has been included in good faith and is for general purposes only.It should not be relied upon for any specific purpose and no representation or warranty is given as regards to its accuracy or completeness. No information in this release shall constitute an invitation to invest in Welspun India Ltd.or any of its affiliates.Neither Welspun India Ltd., nor their or their affiliates' officers, employees or agents shall be liable for any loss, damage or expense arising out of any action taken on the basis of this release, including, without limitation, any loss of profit, indirect, incidental or consequential loss.

NSE: WELSPUNIND | Bloomberg: WLSI:IN | Reuters: WLSP.NS

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Welspun India Limited published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 16:04:21 UTC.