Textiles manufacturer and exporter Welspun’s net sales grew 19 per cent in the September quarter. It posted a net loss of Rs 147.52 crores. Welspun’s total income from operations jumped 22 per cent in July to September 2016 from the same quarter last year. The company achieved its highest quarterly top line during the quarter.
The company has taken a one-time hit of Rs 501 crores with regard to the traceability issue in Egyptian cotton. Despite a 18.2 per cent revenue growth in the first half of 2016-17, Welspun forecast flat revenue for the full financial year. It plans to become a zero debt company by 2020 by shedding its Rs 2,500 crores debt.
Welspun plans to expand its focus on branded and innovative products to become a two billion dollar company in four years, with 20 per cent revenue coming in from domestic sales. It will set up a Rs 600 crores carpet plant near Anjar in 18 months. The investment will be met through internal accruals and debt. The company also plans to spend Rs 600 crores over 18 months spread over financial year 2018 and 2019 to make carpets and rugs. The company’s credit ratings have also been reaffirmed.
