Lower income drags Welspun India Q1 net down 38% to Rs 129 cr

The industry continues to face high raw material, energy costs coupled with rupee appreciation

Textile firm Welspun India on Monday reported a 38.39 per cent decline in consolidated net profit at Rs 128.56 crore for the June quarter due to lower income and higher expenses.

The company had posted a net profit of Rs 208.68 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 Rs 1,552.64 crore as against Rs 1,611.49 crore in the year ago period, down 3.65 per cent.

"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 Rs 1,369.13 crore compared to Rs 1,317.48 crore in the corresponding period last fiscal, up 3.92 per cent.

On the outlook, Goenka said: "We see tremendous potential in the domestic market, especially with the introduction of 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 per cent down at Rs 81.70 on the BSE.