Welspun Living (WELSPUNLIV) Q4 01/02 earnings summary

Executive summary

• FY02 performance strengthened despite the global slowdown and post-September 2001 disruption in the US; operating profit grew 27.14% and net profit rose to Rs 1,146.96 lakh.

• No dividend was recommended, citing inadequate profit.

Financial highlights

• Sales and services were Rs 25,995.79 lakh, up 31.67% YoY versus the comparable 12-month period.

• Net profit was Rs 1,146.96 lakh versus Rs 496.58 lakh in the comparable prior 12 months; reported PBT was Rs 1,422.88 lakh.

• Production increased 19.61% to 7,074 MT from 5,914 MT; reported PBIDT rose 27.14% to Rs 6,835.05 lakh.

• FY02 and prior-period results are not directly comparable: the prior period covered 18 months and included the spinning division before its demerger.

Outlook and guidance

• FY03 sales growth targeted at 17%, with significant bottom-line growth anticipated.

• Capacity expansion of 25–30% planned to lower unit costs and support marketing growth.

• Domestic sales targeted to rise gradually from 3–4% of total sales to 25%; plans also emphasize retailer and institutional business.