Buy Welspun India Ltd For Target Rs.126 - Sushil Finance Ltd
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Highlights from the Quarter (Q4 FY23) :
During Q4 FY23, the top line fell by 3.3% yoy to Rs.2,153.9 cr; on a sequential basis, the top line was up 15.2%. Home textiles (91% of the sales) reported de- growth of 2.7% yoy in revenue to Rs.2,017.1 cr, while flooring revenue grew 10%yoy. The company has increased its stores in India to ~11,170 in the current quarter and aims to increase it to 50,000 stores by FY26. Domestic sales grew by 16% yoy. EBITDA margin improved to 12.9% in Q4 FY23. The average cotton cost consumed during the quarter was Rs.65,000 per candy as compared to Rs.69,000 per candy during the last quarter. The cost of freight has come down by almost1/4 th yoy, the company expects a correction in the overall cost, which would lead to further improvement in the margins. According to the management, the inventory at retailers' levels is starting to become normalized, and with revised prices at a consumer level, it expects to see an uptick in consumer demand for home textiles. Though due to concurrent downward economic situations, it might be a gradual increase and take a couple of quarters to revive back to normal levels. On the flooring front, India, US, UK and Middle East are seeing a pick-up in demand on the institutional front. Net debt stood at Rs.1,534 cr, this is Rs.375 cr lower as compared to Q4FY22. It plans to achieve a net debt below Rs.1,000 cr by FY24. The company has approved a buyback of shares up to Rs.195cr at a price of Rs.120 per share.
To Read Complete Report & Disclaimer Click Here
Please refer disclaimer at https://www.sushilfinance.com/Disclamier/disclaimer
Member : BSE/ NSE/ MSEI. SEBI Registration No.-INZ000165135.
Above views are of the author and not of the website kindly read disclaime
