Welspun India Ltd

About

Welspun India Limited, part of the US$ 2.7 billion Welspun Group, is one of the largest home textile manufacturers in the world. The Company offers a wide spectrum of Home & Technical textile products and Flooring solutions. The Company has established itself as a thought leader within the home textile industry over the years and continue to focus on the enablers viz. Innovation, Branding and Sustainability to consolidate its leadership position. [1]

It manufactures a wide range of home textile products ranging from towels, bath robes to sheets, tob and basic& fashion bedding. It also entered into the business of carpets flooring solutions recently. [2]

Key Points

Strong Distribution Network
WIL's distribution network is spanning in more than 50 countries, making it the largest exporter of home textile products from India. WIL has been a regular supplier to leading retail chains over many years such as Walmart Stores, Costco, Kohls, Bed Bath & Beyond, Ikea, Macy's, etc, which provides revenue stability to the company. [1]

See full details
  • Market Cap 15,644 Cr.
  • Current Price 156
  • High / Low 161 / 59.0
  • Stock P/E 24.4
  • Book Value 33.2
  • Dividend Yield 0.10 %
  • ROCE 17.0 %
  • ROE 17.2 %
  • Face Value 1.00

Pros

  • Company has reduced debt.
  • Company is expected to give good quarter

Cons

  • Stock is trading at 4.69 times its book value
  • The company has delivered a poor sales growth of 4.05% over past five years.

Peer comparison

Sector: Textiles Industry: Textiles - Products

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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
1,490 1,319 1,257 1,435 1,461 1,243 1,185 962 1,536 1,740 1,719 1,731
1,278 1,124 1,104 1,096 1,155 1,055 1,009 795 1,246 1,392 1,442 1,402
Operating Profit 212 195 153 339 306 188 176 167 290 349 277 328
OPM % 14% 15% 12% 24% 21% 15% 15% 17% 19% 20% 16% 19%
Other Income -3 -12 -123 9 10 56 11 18 20 20 25 17
Interest 20 23 27 20 19 25 32 23 21 20 37 29
Depreciation 100 103 101 95 97 99 97 81 83 83 82 66
Profit before tax 89 56 -98 233 200 121 58 81 206 265 182 250
Tax % 33% 32% 55% 34% 18% 20% -3% 32% 27% 30% 25% 33%
Net Profit 60 38 -44 155 163 97 60 55 150 185 137 168
EPS in Rs 0.59 0.38 -0.43 1.54 1.63 0.96 0.60 0.54 1.50 1.84 1.36 1.67

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
1,673 2,041 2,583 3,026 3,514 4,390 4,885 5,639 4,977 5,395 5,324 5,956 6,725
1,506 1,756 2,129 2,575 2,806 3,348 3,610 4,270 4,083 4,600 4,314 4,873 5,482
Operating Profit 167 285 454 451 708 1,042 1,275 1,370 894 795 1,009 1,084 1,244
OPM % 10% 14% 18% 15% 20% 24% 26% 24% 18% 15% 19% 18% 18%
Other Income 215 -129 -3 39 104 91 111 -389 55 -125 86 82 82
Interest 106 107 144 138 144 181 154 87 88 92 95 101 108
Depreciation 106 114 119 133 623 266 326 466 467 402 388 330 315
Profit before tax 170 -65 189 219 45 686 906 427 394 176 613 734 903
Tax % 33% -54% 38% 22% 33% 26% 28% 28% 23% 19% 22% 28%
Net Profit 115 -100 117 171 30 510 648 307 304 142 475 527 640
EPS in Rs -1.12 1.32 1.71 0.30 5.08 6.45 3.05 3.03 1.41 4.73 5.24 6.37
Dividend Payout % 6% 0% 0% 23% 101% 21% 20% 21% 21% 21% 21% 3%
Compounded Sales Growth
10 Years:11%
5 Years:4%
3 Years:6%
TTM:39%
Compounded Profit Growth
10 Years:23%
5 Years:-4%
3 Years:21%
TTM:88%
Stock Price CAGR
10 Years:49%
5 Years:23%
3 Years:35%
1 Year:150%
Return on Equity
10 Years:20%
5 Years:17%
3 Years:15%
Last Year:17%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
78 94 89 100 100 100 100 100 100 100 100 100
Reserves 540 568 832 960 949 1,332 1,799 2,101 2,329 2,389 2,707 3,238
Borrowings 1,658 1,720 1,718 1,694 2,311 2,467 2,566 2,738 2,721 2,510 2,275 1,409
367 456 572 605 780 928 896 1,308 1,099 1,264 1,139 1,350
Total Liabilities 2,638 2,833 3,210 3,359 4,141 4,827 5,362 6,248 6,248 6,264 6,221 6,098
1,507 1,529 1,557 1,611 1,254 1,899 2,649 3,009 2,776 2,625 2,361 2,133
CWIP 24 55 120 54 524 153 181 48 70 29 24 25
Investments 93 107 205 416 750 706 692 826 903 1,079 1,350 1,411
1,014 1,143 1,329 1,277 1,612 2,069 1,841 2,365 2,500 2,531 2,486 2,528
Total Assets 2,638 2,833 3,210 3,359 4,141 4,827 5,362 6,248 6,248 6,264 6,221 6,098

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
142 222 399 593 554 644 1,272 652 491 615 752 970
-65 -310 -234 -315 -963 -525 -801 -720 -293 -222 -238 59
-83 95 -156 -185 432 -126 -568 94 -184 -407 -525 -914
Net Cash Flow -6 8 9 93 24 -7 -97 25 14 -14 -11 116

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 38 24 29 14 23 32 27 48 54 57 52 46
Inventory Days 152 163 130 119 146 135 135 134 150 123 161 135
Days Payable 76 72 58 47 49 44 60 91 85 78 89 80
Cash Conversion Cycle 114 115 101 86 120 124 102 91 119 103 124 101
Working Capital Days 158 94 67 60 64 80 82 84 121 100 104 87
ROCE % 12% 9% 15% 13% 6% 24% 25% 20% 9% 9% 13% 17%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
68.48 68.48 68.48 68.48 68.48 68.48 68.89 68.89 70.00 70.00 70.00 70.00
6.96 7.98 8.30 8.69 8.64 8.22 5.18 4.97 5.02 5.64 5.90 6.88
10.16 10.24 10.31 9.10 9.90 10.22 8.61 8.45 7.80 7.36 7.25 7.30
14.40 13.30 12.91 13.73 12.98 13.08 17.32 17.69 17.18 17.00 16.85 15.82

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