Welspun India advanced 3.93% to close at Rs 55.60 after a trial court approved settlement of pending claims in the US.
Welspun India said it has received final approval from the trial court for the settlement agreement on 28 October 2019 that is intended to resolve all pending legal claims made against the company in the United States concerning the past marketing and labeling of its premium cotton home textile products.In addition, as part of its final approval of the settlement, the court confirmed that Wel-Trak, Welspun's patented solution, can be used to accurately label the source of Welspun's Egyptian and Pima cotton products. Wel-Trak is one of several of the steps that Welspun has undertaken over the past three years to enhance traceability of its premium cotton home textile products.
The company has also increased additional third party assurances, such as vendor audits, and deployed a dedicated resource in Egypt to source Egyptian cotton. With this, Welspun is well equipped to continue to be a leader in global home textiles and leverage opportunities for its emerging businesses viz. flooring, advanced textiles, and domestic home textiles business. The announcement was made during trading hours today, 29 October 2019.
Shares of Welspun India rose 4.90% in two trading sessions to its current market price of Rs 55.60, from a recent closing low of Rs 53 on 25 October 2019.
Welspun India's consolidated net profit jumped 61% to Rs 198.54 crore on 2.5% increase in net sales to Rs 1,824.92 crore in Q2 September 2019 over Q2 September 2018.
Welspun India is engaged in the textile business. The firm manufactures a range of home textile products, primarily terry towels, bed linen products and rugs. Its segments include home textiles and power.
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