Welspun India Q1 net profit down 38% to Rs128 crore
New Delhi: Textile firm Welspun India on Monday reported a 38.39% decline in consolidated net profit at Rs128.56 crore for the June quarter due to lower income and higher expenses.
The company had posted a net profit of Rs208.68 crore for the same period of the previous fiscal, Welspun India said in a BSE filing. Total income during the quarter under review stood at Rs1,552.64 crore as against Rs1,611.49 crore in the year ago period, down 3.65%.
“The industry continues to face headwinds such as high raw material and energy costs coupled with rupee appreciation which may lead to time correction of 1-2 years in our vision announced last year,” Welspun Group chairman B.K. Goenka said.
Total expenses of the company during the quarter was Rs1,369.13 crore compared to Rs1,317.48 crore in the corresponding period last fiscal, up 3.92%. On the outlook, Goenka said: “We see tremendous potential in the domestic market, especially with the introduction of goods and services tax (GST).
We are also gaining momentum in new channels such as hospitality and e-commerce.” Welspun India is part of $2.3 billion Welspun Group. The stock of the company was trading 0.12% down at Rs81.70 on the BSE.