Welspun Living CEO expects emerging businesses to drive growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Welspun Living reported its April-March 2023-24 results on April 25. The company’s revenue grew 20% over last year to ₹2,575 crore while net profit grew 16% to ₹146 crore.

Dipali Goenka, Managing Director and CEO, said the company remains cautiously optimistic about the future given the fragile geopolitical conditions.

“We are living in a dynamic global scenario. But we just want to tell you, we are absolutely on point on to our targets. And we will continue to delight our stakeholders as well,” she said.

Goenka expects revenues to touch ₹15,000 crore by 2026-2027.

The growth will be supported by a 30% compound annual growth rate (CAGR) for the company’s emerging businesses such as flooring, advanced textiles, and domestic consumer products.

The contribution of the emerging segments to overall revenue is expected to improve to 45% by 2026-2027.

The home textile business is expected to grow in upper single digit.

Welspun Living has a net debt of ₹1,300 crore and intends to sustain this level in the upcoming fiscal year, Goenka said.

The company targets a Return on Capital Employed (RoCE) of 16% for the next year, focusing on profitability and efficient capital allocation.

Despite challenges in the Indian retail sector, Welspun Living aims to expand its presence in the market, increasing contribution from the market to 10% by by 2026-2027 from 6.5%.

The growth strategy involves diversification and innovation, she highlighted.

The shares of the company ended 1.7% lower on the NSE today.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow