By using below template you can get initial capital letter for multiple word.
<xsl:call-template name="ginitcap">
<xsl:with-param name="text"> <xsl:value-of select="your value here"/> </xsl:with-param>
</xsl:call-template>
<!-- Customised initial-capital template -->
<xsl:template name="ginitcap">
<xsl:param name="text"/>
<xsl:choose>
<xsl:when...