Welspun India shares jump 13% to hit one-year high after Q2 results; details here

Shares of Welspun India Ltd rose sharply in Wednesday's trade after the company declared its second-quarter earnings. Welspun said its Q2 FY24 came at Rs 196.7 crore, up more than 22x on a year-on-year (YoY) basis. Total revenue for the September quarter climbed 19 per cent (YoY) to Rs 2,542.4 crore.

Net Debt stood at Rs 1,573.4 crore as on September 30 2023 against Rs 1,815.3 crore in the previous quarter.

The stock surged 12.77 per cent today to hit its 52-week high of Rs 143.95. 

Welspun Group chairman BK Goenka said, "It is a proud moment for the company to have reported highest ever consolidated quarterly revenues in Q2 FY24 with consistent profitability in last few quarters, in the face of relatively adverse global economic situation and subdued consumer sentiments. It is also heartening to see the flooring business picking up well and reporting highest quarterly revenues and margin."

On the domestic front, Welspun showed resilience during the quarter despite weak retail market sentiments, as a result of focus on continued expansion and also continued to be in positive margin space, Goenka added.

Welspun said EPS (Earnings per share) was at Rs 2.04 in Q2 FY24 compared to Rs 0.08 in Q2 FY23. Annualized ROCE (Return On Capital Employed) has improved substantially to 14.6 per cent from 5.7 per cent last year.

Separately, Welspun has appointed Murali Sivaraman as an independent director for a four-year term.

In addition, it has approved an investment of Rs 56.40 crore in a Special Purpose Vehicle (SPV) for supply of 47 MW Renewable Energy (RE) for Anjar operations. Welspun said the move will make the company's Anjar Unit about 80 per cent RE by the financial year 2026 with a reduction in the cost of power.

"It would be a significant step towards the company's journey to reach 100 per cent RE by 2030. The company will hold around 27.47 per cent equity share capital of SPV viz. Mounting Renewable Power Ltd," Welspun stated.

 

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