 "Welspun India reports 68% drop in Q3 profit due to rising inflation")
BENGALURU (Reuters) - Home textiles manufacturer Welspun India reported a bigger-than-expected 68% slump in third-quarter profit on Monday as rising inflation pushed consumers to scale back spending on discretionary items.
The bedsheet-maker's consolidated net profit fell to 423.8 million rupees ($5.20 million) for the quarter that ended Dec. 31 from 1.32 billion rupees a year earlier, Welspun India said in an exchange filing.
Analysts had, on average, expected a profit of 609.5 million rupees, according to Refinitiv IBES data.
Textile manufacturers have been grappling with inflation as companies struggled to pass on rising input costs while consumers diverted their savings to essentials such as food and fuel.
"The global environment remained challenging during Q3 FY23 due to inflation and slowdown across our key markets," the company said in a statement.
The conglomerate's earnings before interest, taxes, depreciation, and amortization(EBITDA) slumped 31%.
More From This Section
The home textile business, which accounts for 94% of revenue, reported a 22% fall in revenue, while EBITDA margins for the segment contracted to 11.7%.
Overall revenue dropped nearly 23% to 18.69 billion rupees.
Separately on Monday, the company said it entered a brand licensing partnership with The Walt Disney Company to expand its global brand portfolio.
($1 = 81.5630 Indian rupees)
(Reporting by Aleef Jahan in Bengaluru; Editing by Dhanya Ann Thoppil)