Welspun India, part of the $3.5 billion Welspun Group, today reported a net profit of Rs 53.82 crore for January-March quarter of 2013 against that of Rs 42.42 crore earned in the same period last year.
The company said its standalone net profit rose to Rs 171.40 crore in 2012-13 from Rs 117.11 crore in FY 12.
The net profit on consolidate basis zoomed to Rs 224.82 crore in FY13 as against net loss of Rs 13.37 crore in FY12.
Its consolidated revenue jumped by 13 per cent to Rs 3,647.3 crore in FY13 as against Rs 3,219.4 crore in FY12.
“Welspun has successfully completed one full year post the business reorganisation. The benefits of closing down our unprofitable businesses and consolidating the entire textile business under one roof are clearly reflected in the profitability metrics of the company,” Welspun India Chairman B K Goenka said.
“Our focus for the coming year will be on improving profitability and the effort underway towards further vertical integration is a step in that direction,” Goenka said.
The vertical integration project to increase spinning and weaving capacity is on schedule and expected to be completed by end of FY14. The project entails the installation of 170,000 spindles and 140 looms. The estimated project cost of Rs 700-800 crore will be 72 per cent debt funded.
The debt will receive 5-7 per cent interest rebate from the Gujarat state government and 4-5 per cent from the central government (under TUFS), resulting in an effective interest rate of 2-3 per cent.
The US market, where WIL already holds a dominant position, is slowly getting back on the growth path, with home sales and consumer confidence on the rise.
Welspun is also gaining traction in newer markets such as Canada, South Africa, Japan, Korea and Australia, the statement said.