New Delhi: Welspun India, a part of the USD 3 billion Welspun Group, today swung back in the black with a profit of Rs 129.87 crore in July-September quarter as against a loss of Rs 189.04 crore in the same period last year.
The company, however, clarified that the loss in the year-ago period was due to changes in depreciation policy from straight line method to reducing balance method and has taken an additional one-time depreciation of Rs 463.1 crore.
Had it not been for this, the company would have reported a net profit of Rs 116.6 crore in Q2 of FY14, which in turn would have led to an 11 per cent growth in net profit on a y-o-y basis in the Q2 of FY15.
Revenue increased 22 per cent to Rs 1,413.5 crore, while the finance cost increased 23 per cent at Rs 73.1 crore and depreciation cost jumped 50 per cent to Rs 71.7 crore. The company's expansion project is half-way through with capex of Rs 1,200 crore completed by the end of the quarter.
The 170,000 spindles and 140 looms, which are part of this plan producing bed-sheets, towels and other made-ups have started commercial operations effective September, 2014. The remaining capex of around Rs 1,300 crore is expected to be completed over the next two years, it said.
Speaking about the quarterly performance, group chairman B K Goenka said, "We have completed half of our major capex plans, thus enabling larger in-house production of yarns and fabrics.
"This will help consolidate our leadership position in the home textile category, in terms of scale and quality on account of lower dependence on outside suppliers."
