Welspun’s consolidated net profit stood at 2.1 million rupees ($23,178.81) for the three-month period ended December 31, down sharply from 1.21 billion rupees in the year-ago period.
The results include a one-off charge of 189.7 million rupees related to India’s new labor laws, which were introduced last November as part of the government’s efforts to simplify regulations and encourage investment.
Operating revenue fell 9 percent to 22.62 billion rupees, while earnings before interest, taxes, depreciation and amortization (EBITDA) fell 493 basis points to 7.7 percent.
KEY CONTEXT
Indian textile exporters including Welspun and Trident suffered for months from high US tariffs, with some looking for new buyers in Europe and offering discounts to US customers to stay afloat.
These companies are now expecting better quarters as US President Donald Trump announced a trade deal with India, cutting tariffs on Indian goods, just days after New Delhi signed a separate trade deal with the European Union.
Welspun Living, which supplies many U.S. retailers including Costco Wholesale and Target, gets more than 60 percent of its sales from the United States and about 18 percent from the United Kingdom and Europe.
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