Welspun India Q1 net profit up 17.49% at Rs 156.07 cr

Textile firm Welspun India on Tuesday reported a 17.49 per cent increase in consolidated net profit at Rs 156.07 crore for the quarter ended June 30.

The company had posted a net profit of Rs 132.83 crore for the corresponding period of the previous financial year.

Total income during the quarter under review stood at Rs 1,736.29 crore, up 10.04 per cent, as against Rs 1,577.78 crore reported in the corresponding quarter a year ago, Welspun India said in a regulatory filing.

Earlier this month, Welspun India said it received preliminary court approval for settlement of its litigation in the US with regards to labelling and marketing of Egyptian cotton products.

In May this year, Welspun India had announced that company and its subsidiaries, which have been facing litigation in the US surrounding its premium cotton home textile products, have entered into a settlement agreement in the US.

The settlement agreement provides monetary payments to settlement class members not exceeding USD 36 million (about Rs 250 crore).

Welspun had reported a consolidated loss of Rs 78.43 crore for the quarter ended March 31, 2019, due to exceptional expense of Rs 224.01 crore related to settlement of litigation in the US with regards to labelling and marketing of Egyptian cotton products.

In 2016, the US retail giant Target Corporation had terminated contract with the Gujarat-based textiles maker over alleged lapses in its products supply.

Welspun India had, later, appointed consultancy firm Ernst & Young to look into the alleged lapses.

Shares of Welspun India were trading 2.17 per cent lower at Rs 51.85 apiece on the BSE.