Welspun India profit plummets 47% due to GST, destocking

Welspun India Limited (WIL), one of world’s leading home textile manufacturers witnessed a major decline in its profit for the third quarter, which fell 47 percent to Rs 80 crore (approx $12.4 million) as a result of customer destocking and the introduction of Goods and Services Tax (GST), contributing to a duty draw back.
 
Welspun Group-Facebook

The home textiles firm had posted a net profit of Rs 150 crore (approx $23.5 million) in the same period of the last financial year.
 
The company’s revenue for the quarter ended December 2017 was also down 7 percent to Rs 1,414 crore (approx $ 220.5 million), compared with Rs 1,522 crore (approx $ 237.2 million) it posted in the same period last year.
 
Welspun India attributed the poor performance to destocking and impact of GST, which lead to duty drawback impacting the overall performance of the firm. However, the company remains optimistic for a turnaround in future and says it is ready to enter the next trajectory in the coming quarters.
 
Commenting on the result, Welspun Group Chairman BK Goenka in a statement said: "We have been taking steps to be prepared for future in terms of our brands, channels, innovation, traceability solutions, sustainability solutions and many other areas. We believe we have built a solid foundation and are ready to enter the next trajectory.”
 
Welspun India is part of USD 2.3 billion Welspun Group and the country’s leading player in the textile industry.

Copyright © 2018 FashionNetwork.com All rights reserved.

TextilesBusiness