Welspun Living (WELSPUNLIV) Q3 24/25 earnings summary

Executive summary

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

• Home textile exports grew 6% in Q3 and 14% YTD, with strong market share gains in the U.S., Europe, UK, and RoW.

• Domestic brands and flooring segments showed double-digit YTD growth, with Christy achieving record sales and global expansion.

• Branded business and innovation sales posted 7% and 8% YoY growth in Q3 FY25, respectively.

• Board approved sale of 48% equity in Welassure Private Limited for INR 2.40 crore, expected completion by March 31, 2025.

Financial highlights

• Q3 FY25 EBITDA was ₹3,185 mn (INR 319 crores) at a margin of 12.6%; YTD EBITDA was ₹11,326 mn (INR 1,133 crores) at 14.1%.

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

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

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

• Q3 CapEx was ₹1,033 mn (INR 103 crores), mainly for towel projects; YTD CapEx at ₹5,950 mn (INR 595 crores).

Outlook and guidance

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

• EBITDA margin guidance revised to 14% for FY25 due to one-time costs and external factors.

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

• Net debt targeted to reduce to ₹14,000-15,000 mn (INR 1,400-1,500 crores) by FY25 end, ₹10,000 mn (INR 1,000 crores) by FY26, and zero by FY28.

• Management focused on sustainable growth, targeting 100% renewable energy by 2030.