Welspun Living Q2 Results Review - Contracting Margins Mar The Strong Topline: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Welspun Living Ltd. reported its highest-ever quarterly revenue of Rs 28.7 billion, up by a healthy 14.5% YoY and 13.3% QoQ, given the robust performance in its home textile segment, despite a muted flooring business. Gross margin contracted 191 bps YoY and 184 bps QoQ to 44.6% versus our estimate of 47%. Ebitda was flat YoY (up ~5% QoQ) at Rs 3.6 billion, 10% below our estimate. Ebitda margin contracted 182 bps YoY and 102 bps QoQ to 12.4% on higher freight and logistic costs, versus our estimate of 14%. Adjusted profit after tax grew at 2.2% YoY and 8.3% QoQ to Rs 2 billion, disappointing on our estimate. HT exports grew at 17% YoY, despite challenges like the Red Sea issue, container shortages and mixed global macroeconomic conditions. Innovation business grew at 13% YoY to Rs 5.9 billion, contributing 23% to overall revenue. Domestic consumer business was resilient despite subdued demand and expanded 10% YoY to Rs 1.6 billion. Emerging business (comprising domestic consumer business, global brands, advanced textiles and flooring) grew at 22% YoY. Management has maintained its 10-12% revenue growth for FY25, with 15%-15.5% Ebitda margin (including other income). We trim our FY25E/FY26E Ebitda margin by 40 bps/30 bps to factor in the higher freight and logistics costs arising from the ongoing Red Sea crisis. We cut our EPS for FY25E/FY26E by 8%/7%, respectively, and maintain Buy with a revised target price of Rs 196 (Rs 210 earlier), based on 18 times FY26E P/E (unchanged)..Click on the attachment to read the full report:.Somany Ceramics Q2 Results Review - Subdued Volume Growth, Decline In NSR Dented Earnings: IDBI Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Welspun Living Q2 Results Review - Contracting Margins Mar The Strong Topline: Systematix

The brokerage maintains Buy rating on the stock with a revised target price of Rs 196, based on 18 times FY26E P/E (unchanged).

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Welspun Living Q2 Results Review - Contracting Margins Mar The Strong Topline: Systematix

The brokerage maintains Buy rating on the stock with a revised target price of Rs 196, based on 18 times FY26E P/E (unchanged).

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