Welspun India (WIL),a part of the USD 3.5 billion Welspun Group,today reported a net profit of Rs 42.42 crore in the quarter ended March 2012.
WIL’s had posted a net loss of Rs 156.34 crore during the corresponding quarter of previous fiscal,the company said in a statement here.
The company’s sales rose to Rs 693.85 crore in the quarter under review,compared to Rs 424.65 crore in the previous year.
“After a sluggish start,the textile industry in India is showing an upward trend and we being one of the leading home textiles players in the world have done exceptionally well. During FY12,we took various steps to consolidate our manufacturing operations and are merging Welspun Global Brands Limited (WGBL) into Welspun India (WIL) to ensure that we can provide superior quality product and services to our customers,” Welspun India Managing Director Rajesh Mandawewala said.
Post this merger both the manufacturing and marketing business will be consolidated under WIL,thereby creating textile business that will come under single umbrella while Welspun Retail will be renamed as Welspun Global Brands to retain its marketing identity.
After the merger,WIL,which has 89.01 million share outstanding,will issue 10.47 million shares and would have total 99.48 million shares outstanding.
The above arrangement is subject to necessary statutory and regulatory approvals. The appointed date for this merger is proposed to be April 1,2011.
Meanwhile,sales volumes in terry towels witnessed 7.1 per cent growth to 39,113 tonne and yarns grew by 5.5 percent to 33,416 tonne.
The company’s interest cost has gone up due to higher interest rates for term loans and discontinuation of interest subvention on working capital loans.