Welspun Living (WELSPUNLIV) Q2 24/25 earnings summary

Executive summary

• Achieved record consolidated quarterly revenue of ₹29,360 mn (INR 2,936 crore) in Q2 FY25, up 16% YoY and 13% QoQ, with sustained EBITDA growth of 7.5% despite Red Sea disruptions and cost pressures.

• Flooring business posted record quarterly revenues; global brands grew over 50% YoY; emerging businesses (domestic consumer, global brands, advanced textiles, flooring) grew 22% YoY and contributed 33% of total revenue.

• Export growth was robust, with overall exports up 18% YoY in Q2 and innovation products contributing 23% of revenue.

• Domestic retail business grew 10% YoY, with the Welspun brand achieving 20% growth and maintaining leadership in home textiles.

• Recognized for ESG leadership, awarded EcoVadis Silver and multiple other awards, ranking in the top 15% globally.

Financial highlights

• Q2 FY25 total income: ₹29,360 mn (+15.5% YoY, +13% QoQ); H1 FY25: ₹55,245 mn (+16.2% YoY).

• Q2 EBITDA: ₹4,206 mn (14.3% margin, +7.5% YoY, +7% QoQ); H1 EBITDA: ₹8,140 mn (14.7% margin, +11% YoY).

• Q2 PAT after minority interest: ₹2,010 mn (+2.2% YoY, +8.3% QoQ); Q2 EPS: ₹2.10 (+3% YoY, +9% QoQ).

• Net debt at ₹18,323 mn, up due to capex, share buyback, and working capital needs; interest cost increased.

• Net worth at ₹45,575 mn as of Sept 2024; gross debt increased to ₹28,786 mn.

Outlook and guidance

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

• Targeting ₹150,000 mn topline by FY27, with full capacity utilization from new projects expected by FY28.

• Net debt expected to reduce to ₹0-2,000 mn by FY28 after completion of CapEx and repayments.

• Expansion at Anjar to be completed in two phases, with Phase 1 (Terry Towel) nearing completion and Phase 2 (bed linen, towel looms, spinning) to be operational by Q3 FY27.

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