Welspun India posts Q4 loss of Rs 78 crore
Textile firm Welspun India loss for the fourth quarter ended March 31 widened to Rs 78 crore ($11.3 million) in comparison to Rs 90 crore it had posted for the corresponding period of the previous financial year.
The company’s total income during the quarter was up by 4 percent to Rs 1,601 crore as against Rs 1,535 crore it had reported in the year-ago period.
Welspun said that the loss was due to the Rs 224 crore it spent on settlement of litigation in the US with regards to labelling and marketing of Egyptian cotton products.
In 2016, US retail giant Target Corporation had terminated the contract with Welspun due to lapses.
"To avoid the burden, cost, and uncertainty of continued litigation in the United States surrounding the provenance of its premium cotton home textile products, the company and its subsidiaries have entered into a settlement agreement subsequent to year-end.
"The settlement agreement provides monetary payments to settlement class members not to exceed an aggregate USD 36 million," Welspun India said in a regulatory filing.
For the full year, Welspun’s net profit declined 45 percent to Rs 210 crore in the year ended March 2019 as against Rs 385 crore during the previous year ended.
Sales rose 8 percent to Rs 6,527 crore in the year as against Rs 6,051 crore it reported during the previous year ended March 2018.
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