Welspun India tanks 6% after profit plunges 90% YoY to Rs 21 crore

Shares of Welspun India plummeted over 6 per cent in Thursday’s trade as net profit plunged 90 per cent year-on-year (YoY) to Rs 21.36 crore as against Rs 222.9 in the corresponding quarter of the previous fiscal year.

Total income saw an 11 per cent YoY decline to Rs 1,978 crore for the quarter ended June 2022 as against Rs 2,227 crore in the same quarter of the previous year.

EBITDA stood at Rs 173.6 crore in Q1FY23 with an EBITDA margin of 8.8 per cent as against Rs 459.8 crore and 20.6 per cent margin in Q1FY22.

B.K. Goenka, Chairman, Welspun Group, said, “We have delivered a relatively healthy operating performance in the face of an unusually tough macroeconomic environment characterised by unprecedented high input costs, rising inflation, and subdued consumer sentiments. During the quarter under review, our Domestic Retail business, which has power brands like ‘Welspun’ and ‘SPACES’, again registered one of its highest quarterly revenue."

Following the update, the scrip hit its day's low of Rs 66.95. At 12:20 pm, the stock traded at Rs 68.4, 5 per cent below its previous close of Rs 71.6.

As of 30 June 2022, promoters held a 70.36 per cent stake in the firm, and FIIs and DIIs held 7.07 and 5.35 per cent stakes, respectively.

Welspun India has various businesses such as line pipes, home textiles, infra, warehousing, oil & gas, advanced textiles, and floorings.