WELSPUN LIVING LIMITED WLL/SEC/2023 | October 25, 2023 |
To | |
Bombay Stock Exchange Limited | National Stock Exchange of India |
Department of Corporate Services, | Limited |
SP. J. Towers, Dalal Street, | ListingCompliance Department |
Mumbai - 400 001 | Exchange Plaza, Bandra-Kurla Complex, |
(Scrip Code-514162) | Bandra (E), Mumbai - 400 051 |
(Symbol: WELSPUNIND, Series BE) | |
Dear Sir / Madam, |
Outcome of the meeting of the Board of Directors of Welspun Living Limited (the Company) held on October 25, 2023.
Please take note that the Board of Directors of the Company at its meeting held on October 25, 2023 has considered and approved the following businesses:
- Unaudited Financial statements for the quarter ended September 30, 2023.
Please find enclosed the unaudited financial results of the Company, on consolidated as well as standalone basis, for the quarter ended September 30, 2023, as reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held today i.e. October 25, 2023.
Further, the Limited Review Reports of the Auditors of the Company on the unaudited financial results of the Company (both on consolidated and standalone basis) and the press communication, which is being released simultaneously to the media, are also attached.- Appointment of Mr. Murali Sivaraman (DIN: 01461231), as Independent Director.
In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to inform you that at the recommendation of the Nomination and Remuneration Committee and subject to approval of the shareholders, the Board of the Company has appointed Mr. Murali Sivaraman, holding Director Identification Number (DIN: 01461231), as
an Independent Director of the Company for his first term of 4 (Four) years from November 01, 2023 to October 31, 2027. He will not be liable to retire by rotation.
Mr. Murali Sivaraman holds Directorship in Huhtamaki India Limited, Bharat Forge Limited, ICICI Lombard General Insurance Company Limited, Medplus Health Services Limited.
The details as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023 is given in Annexure A to this letter.
Please note that Mr. Murali Sivaraman is not debarred from holding office of director by virtue of any order by the Securities and Exchange Board of India or any other such authority.
-
Investment in a Special Purpose Vehicle (SPV) for supply of 47 MW Renewable Energy Round-The-Clock(RE-RTC):
The Company has a stated objective to be a 100% Renewable energy consumer by the year 2030. In this direction, the Board of Directors in their meeting held today has approved, after due evaluation of various proposals presented, an investment not exceeding ₹56.40 Crore in a Special Purpose Vehicle (SPV) for supply of 47 MW Renewable Energy Round-The-Clock(RE-RTC) basis for Anjar operations at the most competitive rates, which will make the Company's Anjar Unit about 80% 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% RE by 2030. The Company will hold ~27.47% equity share capital of SPV viz. Mounting Renewable Power Limited ("MRPL").
The details as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023 is given in Annexure B to this letter.
With reference to our letter dated September 29, 2023 please note the trading window for dealing in the securities of the Company by the Insiders, as defined under the SEBI (Prohibition of Insider Trading) Regulations, 2015 shall re-open from Saturday, October 28, 2023.
The above results, have been approved by the Board of Directors of the Company at its meeting held on October 25, 2023 commenced at 11:00 a.m. and the above agenda was approved at 1:30 p.m.
Please take the same on your record.
Thanking you,
Yours faithfully,
For Welspun Living Limited
(Formerly known as Welspun India Limited)
Shashikant Thorat
Company Secretary
FCS - 6505
Enclosures: as mentioned above
Disclosure of information pursuant to Regulation 30 - Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 09, 2015 and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.
Annexure A
1. Appointment of Mr. Murali Sivaraman:
Name of the Director | Mr. Murali Sivaraman (DIN: 01461231) |
Reason for change, viz, | Appointment - Additional Director in the category |
appointment | of Non-Executive, Independent Director, not liable |
to retire by rotation. | |
Date of appointment | The appointment is effective from November 01, 2023. |
Term of appointment | Appointed for a first term of four (4) years from |
November 01, 2023 to October 31, 2027, subject to | |
approval of the shareholders of the Company, by means | |
of a special resolution | |
Brief profile | Mr. Murali Sivaraman, aged 62 years, is a Chartered |
Accountant (A.C.A - Institute of Chartered Accountant of | |
India) Cost and Works Accountant (A.I.C.W.A - Institute | |
of Cost and Works Accountant of India) and has a Post | |
Graduate Diploma in Management (PDGM - Indian | |
Institute of Management, Ahmedabad). He has also | |
completed his Advanced Management Program from | |
Harvard. He has more than 36 years of experience. | |
He has been part of Philips Lighting (Singapore) as | |
President for Growth Markets, Royal Philips | |
Electronics as CEO Global Domestic Appliance and | |
Philips India as Managing Director. Prior to Philips - he | |
has held multiple positions with Akzo Nobel (formerly | |
Imperial Chemical Industries) - both Global and in India. | |
His current Board and Advisory role includes | |
Huhtamaki India Limited - Chairman, Bharat Forge | |
Limited, ICICI Lombard General Insurance Company | |
Limited, Medplus Health Services Limited, Private | |
Equity advisory - Advent International India and |
Hamilton Housewares Pvt. Ltd. | |
Disclosure of relationship | Mr. Murali Sivaraman is not related to any Director of |
between directors | the Company. |
Annexure B |
Name of the target entity, details in brief
whether the acquisition would fall within related party transaction(s) and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired?
Industry to which the entity being acquired belongs
Objects and effects of acquisition
Brief details of any governmental or regulatory approvals required for the acquisition
Indicative time period for completion of the acquisition
Nature of consideration
Cost of acquisition or the price at which the shares are acquired
Percentage of shareholding acquired Brief background about the entity acquired in terms of products/line of
Mounting Renwable Power Limited ("MRPL"), incorporated on May 27, 2022. It is a special purpose vehicle formed for undertaking renewable energy project.
Yes, it is a related party transaction. MRPL is a subsidiary of Welspun New Energy Limited ("WNEL"). WNEL is a 100% subsidiary of Welspun Enterprises Limited ("WEL"), The Company and WEL are controlled by same promoter group.
Renewable Energy
The Company will get Renewable Energy at the most competitive rates on arms' length basis and the cost of power shall also reduce. This arrangement shall be without recourse to the Company and is most appropriate for the Company from capital allocation point of view.
This project will be effective in reducing carbon footprint of around ~300 kilo tons of CO2e emissions due to electricity consumption (as per CEA estimations)
No governmental or regulatory approvals are required for the investment.
December 31, 2023
Cash
At fair market value
~27.47% of equity share capital of MRPL MRPL having Corporate Identity Number U40300DL2022PLC399160, has its registered
business acquired, date of incorporation, history of last 3 years turnover, country in which the acquired entity has presence and any other significant information
office at 2nd Floor Mira Corp Suites, Plot N. 1&2 B, Old Ishwar Nagar, New Friends Colony, South Delhi, Delhi, 110065. It is engaged in business, inter alia, of generation and supply of Renewable Energy. MRPL is a special purpose vehicle and at present does not have any revenue.
Repurposed | Future Ready | Q2 FY24 |
Highest ever Quarterly Revenue with sustainable profits
Mumbai, October 25, 2023: Welspun Living Ltd. (WLL), a global leader in Home Textiles and part of the US$ 3 billion Welspun Group, announced Q2-FY24 results today.
Management Comment:
Speaking about the performance, Mr. B.K. Goenka, Chairman, Welspun Group, said "It is a proud moment for the Company to have reported highest ever consolidated quarterly revenues in Q2FY24 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. All our Emerging businesses of Global Brands, Domestic consumer, Advance textile and Flooring are continuing to show strength and grew 28% in Q2'FY 24.
On 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. 'Welspun' brand strengthened its leadership position and continued being the most widely distributed Home Textile brand in the country with presence in 600+ towns and 15,511+ outlets.
Welspun's practices in Environment, Social & Governance (ESG) front is industry leading and we always set newer benchmarks in doing business sustainably and responsibly.We are entering into a JV for provision of 47MW of Solar & Wind energy at our Anjar facility by 2026, which is another significant step towards our journey to be 100% renewable energy by 2030."
Key Highlights
- Achieved highest ever Quarterly Revenues of ₹ 25,424 mn grew 19% YoY
- EBITDA for Q2 FY 24 up 158% YoY at ₹ 3,913 mn @ 15.4%
- PAT for Q2 FY 24 is ₹ 1,967 mn grew more than 22x YoY
- Net Debt stood at ₹ 15,734 mn as on 30th September 2023 vs. ₹ 18,153 mn as on 30th June 2023, down by ₹ 2,419 mn
- ROCE% at 14.6% (annualized) vis-à-vis 5.7% in FY23
- Flooring also recorded the highest ever quarterly Revenue of ₹ 2,426 mn grew 52% YoY
- Flooring EBITDA for Q2 FY 24 is at 8.3% is ₹ 201 mn grew by 5x YoY
NSE/BSE: WELSPUNIND | Bloomberg: WLSI:IN | Reuters: WLSP.NS | Page | 1 |
Repurposed | Future Ready | Q2 FY24 |
Key Financial highlights of the Quarter (Consolidated):
(₹ Million) | ||||||||
Financial Summary | Q2FY24 | Q2FY23 | YoY% | Q1FY24 | QoQ% | H1 FY 24 | H1 FY 23 | YoY% |
Total Income | 25,424 | 21,366 | 19.0% | 22,149 | 14.8% | 47,545 | 41,156 | 15.5% |
EBITDA | 3,913 | 1,517 | 158.0% | 3,415 | 14.6% | 7,327 | 3,252 | 125.3% |
EBITDA Margin | 15.4% | 7.1% | 829 Bps | 15.4% | - | 15.4% | 7.9% | 751 Bps |
PAT after Minorities | 1,967 | 87 | 2170.0% | 1,616 | 21.7% | 3,583 | 311 | 1053.8% |
Segmental Details | Q2FY24 | Q2FY23 | YoY% | Q1FY24 | QoQ% | H1 FY 24 | H1 FY 23 | YoY% |
Home Textile: | ||||||||
Revenue | 23,523 | 20,114 | 16.9% | 20,376 | 15.4% | 43,899 | 38,635 | 13.6% |
EBITDA | 3,594 | 1,276 | 181.7% | 3,123 | 15.1% | 6,717 | 2,992 | 124.5% |
EBITDA Margin (%) | 15.3% | 6.3% | 893 Bps | 15.3% | - | 15.3% | 7.7% | 756 Bps |
Flooring: | ||||||||
Revenue | 2,426 | 1,596 | 52.0% | 2,251 | 7.8% | 4,677 | 3,290 | 42.2% |
EBITDA | 201 | 42 | 375.8% | 183 | 9.8% | 384 | 63 | 506.2% |
EBITDA Margin (%) | 8.3% | 2.6% | 563 Bps | 8.1% | 15 Bps | 8.2% | 1.9% | 628 Bps |
(₹ Million) | |||
Balance Sheet Summary | 30-Sept-23 | 31-Mar-23 | |
Net Worth | 41,975 | 40,878 | |
Gross Debt | 23,433 | 23,504 | |
- | Short Term Loans | 13,266 | 12,342 |
- | Long Term Loans | 10,167 | 11,162 |
Net Debt | 15,734 | 15,343 | |
- | Net Flooring Debt | 8,222 | 7,878 |
Net Debt excluding Flooring Debt | 7,512 | 7,465 | |
Net fixed assets (incl. CWIP) | 37,395 | 37,777 | |
Net current assets (excl. cash & cash equiv.) | 23,988 | 23,135 | |
Capital Employed | 73,895 | 72,389 | |
Net Debt/EBITDA | 1.23x | 1.76x | |
Net Debt/Equity | 0.37x | 0.38x |
NSE/BSE: WELSPUNIND | Bloomberg: WLSI:IN | Reuters: WLSP.NS | Page | 2 |
Repurposed | Future Ready | Q2 FY24 |
- Total Income:
- Total revenue for Q2 at ₹ 25,424 mn grew 19.0% YoY
- Textile business revenue for Q2 at ₹ 23,523 mn grew 16.9% YoY
- Flooring business revenue for Q2 at 2,426 mn grew 52.0% YoY
- EBITDA:
- Consolidated EBITDA at margin of 15.4% is ₹ 3,913 mn grew 158.0% YoY
- Textile Business EBITDA at margin of 15.3% is ₹ 3,594 mn grew 181.7% YoY
- Flooring Business EBITDA at margin of 8.3% is ₹ 201 mn grew by 5x YoY
- PAT (after minority):
- Consolidated PAT for Q2 is ₹ 1,967 mn grew more than 22x YoY
- EPS:
- EPS at ₹ 2.04 in Q2 FY 24 vs ₹ 0.08 in Q2 FY 23
- Net Debt:
- Net Debt stood at ₹ 15,734 mn as on 30th September 2023 vs. ₹ 18,153 mn as on 30th June 2023,
down by ₹ 2,419 mn.
- Net debt excluding Flooring business stood at ₹ 7,512 mn as on 30th September 2023 vs. ₹ 9,993 mn as on 30th June 2023, down by ₹ 2,481 mn.
- ROCE:
- Annualized ROCE has improved substantially to 14.6% from 5.7% last year.
Key Business Updates:
- Company has achieved highest ever quarterly consolidated Revenue in Q2 is ₹ 25,424 mn grew by 19.0% YoY
-
EBITDA for Q2 at Margin 15.4% is ₹3,913 mn in Q2FY 24 grew 158.0% o PAT for Q2 FY 24 is ₹ 1,967 mn grew more than 22x YoY
o Flooring Segment also recorded highest ever quarterly Revenue of ₹2,426 mn grew 52.0% YoY at EBITDA Margin of 8.3%
o Emerging businesses Sales of Domestic Consumer business, Branded, Advanced Textiles - Flooring businesses grew 28% YoY in Q2 FY 24
- Innovation & Branded business grew by 67% and 15% YoY respectively in Q2 FY 24
- Our Domestic consumer brand Welspun continued to be the most widely distributed Home Textile brand in the country with presence in 600+ towns and 15,511+ outlets (up by 2246 in Q2), a reach not hitherto achieved by any home textile player in India.
NSE/BSE: WELSPUNIND | Bloomberg: WLSI:IN | Reuters: WLSP.NS | Page | 3 |
Repurposed | Future Ready | Q2 FY24 |
Capex:
- In H1 FY24 the Company has spent ₹ 1,680 mn towards Capex, mainly towards the setup of 30 MW Solar Power plant at our Anjar facility.
Awards and Accolades:
- Won Gold in Hometech category and Silver in Meditech category in SRTEPC award for exceptional export performance in FY23 for Flooring and Advance Textile Business.
- Won 19th IACE awards by IACC in 'Excellence & Leadership in Skilling and Education' category.
- Clinched "India's Most Trusted Company of the Year" Title by Brandscouncil Rating for Flooring Business.
- Woman Supported by WSSW are breaking the barriers , Rhythm sangwan have won the Gold in 25m Pistol Shooting in Asian Games 2023.
About Welspun Living Ltd:
Welspun Living Ltd (WLL), part of $ 3 Bn Welspun Group, is a global leader in Home textiles.With a distribution network in more than 50 countries and world class manufacturing facilities in India, Welspun is strategic partners with top global retailers.WLL is driven by its differentiation strategy based on Branding, Innovation and Sustainability.
About Welspun Group:
A US$ 3 billion enterprise, Welspun Group is one of India's fastest growing conglomerates with businesses in Line Pipes, Home Textiles, Infrastructure, Warehousing, Oil & Gas, Advanced Textiles and Floorings.The Group has a strong foothold in over 50 countries with 30,000 employees and over 100,000 shareholders. Headquartered in Mumbai, Welspun Group's manufacturing facilities are strategically located in India, USA and Saudi Arabia.Known for technological and operational excellence, the Group has established a leadership position in the Line Pipe & Home Textiles sectors globally.Its clients include most of the Fortune 100 companies.
For further information please visit www.welspunliving.comor contact:
Mr. Sanjay Gupta (sanjay_gupta1 @welspun.com) / Mr. Salil Bawa (salil_Bawa @welspun.com)
DISCLAIMER:
The information in this release has been included in good faith and is for general purposes only.It should not be relied upon for any specific purpose and no representation or warranty is given as regards to its accuracy or completeness. No information in this release shall constitute an invitation to invest in Welspun Living Ltd.or any of its affiliates.Neither Welspun Living Ltd., nor their or their affiliates' officers, employees or agents shall be liable for any loss, damage or expense arising out of any action taken on the basis of this release, including, without limitation, any loss of profit, indirect, incidental or consequential loss.
NSE/BSE: WELSPUNIND | Bloomberg: WLSI:IN | Reuters: WLSP.NS | Page | 4 |
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Welspun India Limited published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 13:49:37 UTC.
