Welspun net profit up two per cent in Q1
For the quarter ended June 30 Welspun India’s consolidated net profit rose 2.4 per cent. Total income during the quarter under review was up 1.6 per cent. The volume growth of eight per cent was mostly offset by a change in drawback rates resulting in a reported growth rate of 1.6 per cent.
The numbers were also impacted by an increase in cotton prices. Cotton and equivalent yarn make up for 45 per cent of the company’s cost. Cotton costs have increased substantially, from Rs 42,000 per candy to Rs 48,000 per candy.
The textile firm sees positive growth momentum in volumes and is confident of achieving its annual guidance for revenues and profits. Welspun continues to pursue its differentiation strategy based on branding, innovation, sustainability and its patented traceability solution.
Welspun India, part of the Welspun Group, will invest Rs 900 crores this year as part of its plan to set up a flooring textile facility in Telangana. The textile company has already invested Rs 70 crores of the total outlay in the first quarter of the year. The facility for flooring solutions is the first of its kind in India. The facility will be commissioned by December 2019 and is spread over 27 million sq ft.