Mumbai: Bed and bath linen manufacturer Welspun India Ltd reported a 17.2% decline in its net profit for the December quarter to Rs150.24 crore, as the loss of contract with American retail chain Target Corp. continued to hurt.
Revenues rose 3.9% to Rs1,500.8 crore.
Welspun India will now focus on manufacturing “flooring solutions”, including rugs and carpets in a new facility over the next two fiscal years, the company said in a statement. Welspun has allocated Rs600 crore for this facility which will be in Anjar, Gujarat.
Welspun India had lost over 30% of its market value, sinking to its lowest valuation in 16 years, after US retailer Target severed business ties in August 2016, alleging the Indian manufacturer used a cheaper version of cotton and passed it off as Egyptian cotton.
Welspun shares closed up 0.53% at Rs76.20 compared to a 0.70% decline in the Sensex at 27,655.96 points.