Welspun India Q4 net profit falls 22%
Textiles firm Welspun India reported a 22.57 per cent fall in consolidated net profit at Rs. 154.48 crore for the quarter ended March 31. Its net profit had stood at Rs. 199.53 crore in the year-ago quarter.
The company's results show it still battles the aftermath of losing its biggest client, US retailer Target Corporation, after Welspun was found selling cheaper sheets as made from premium Egyptian cotton.
Total income of the company increased by 8.1 per cent to Rs. 1,772.71 crore during the quarter under review as against Rs. 1,639.38 crore during the same period in the previous fiscal, Welspun India said in a BSE filing.
During financial year 2016-17, Welspun India’s consolidated net profit grew to Rs. 362.37 crore as against Rs. 749.12 crore in the preceding fiscal, it said.
The company’s total income also rose to Rs. 6,721.09 crore in the just concluded fiscal, from Rs. 6,014.29 crore in 2015-16.
Its board has also recommended a dividend of Rs. 0.65 per share.
The company said it has also launched a traceability program Wel-Trak to help retailers and customers track the origin of Welspun products. The program will use radio frequency identification (RFID) tags to track cotton as it goes from ginning to spinning to finished products and QR codes to trace the process back to the farm from where they originate.
In February this year, Welspun signed a pact with Cotton Egypt Association to have its Egyptian cotton products certified by the CFA in a move to restore confidence in Welspun’s supplies.
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