In this blog, we will share our spotlight on Welspun India Ltd.
Welspun India Ltd. – Highlights
Welspun India Ltd. is trading at Rs 101.25, up by 11.02% on the BSE. The stock is up 286.45% in last one year as compared to a 56.58% spurt in S&P Bse Sensex.
The upward move in the stock is mainly due to the following reasons – announcement by the textile company that the Welspun India Ltd. and Target Corporation which is one of the largest retailer with over 1,900 stores in the U.S.A., will be working together again.
They recently completed a vendor re-empanelment process with Welspun Global Brands Ltd., a subsidiary of the Company. Until FY16, the business with Target Corporation accounted for nearly 10% of overall business.
In a separate filing, the company stated that its board of directors has approved the buyback of equity shares by the company at a price of Rs 120 per equity share for an aggregate amount of Rs 200 crore, representing 6.36 percent of the total paid-up equity share capital and free reserves from the company’s shareholders on a proportionate basis.
The Board of Directors of the Company have also approved to pay Dividend of Re. 0.15 per share of the face value of Re.1 each at the rate of 15% on the equity shares for the FY 20-21. The Dividend will be paid to the shareholders who are holding equity shares of the Company on the record date of May 26, 2021.
The company increased its consolidated net profit by 52% from Rs.85.60 crore in Q4FY20 to Rs.130.11 crore in Q4FY21. Its net sales increased by 32.05 % to Rs.2135.71 crore in Q4FY21, compared to Rs.1617.32 crore in the same period, previous year. The profit growth was largely driven by smart tweaking of inventory which resulted in better operating cost management.
Welspun India is one of the world’s largest home textile manufacturers, with a presence in Bed Bath & Flooring. It is India’s largest exporter of home textile products. Welspun supplies to 17 global retailers out of the top 30.
It has a dominant presence in fifty countries worldwide, with a distribution network in over 32 countries, including the United States, Canada, the United Kingdom, and Australia.