Welspun India Q1 net up 2.4 pc at Rs 127 cr

Textile firm Welspun India today reported a 2.4 per cent rise in consolidated net profit at Rs 127.2 crore for the quarter ended June 30.

The company had posted a net profit of Rs 124.3 crore for the same period of the previous fiscal.

Total income during the quarter under review stood at Rs 1,577.8 crore, up 1.6 per cent, as against Rs 1,552.6 crore in the year ago period, Welspun India said in a BSE filing.

"Volume growth of 8 per cent was mostly offset by change in drawback rates resulting in a reported growth rate of 1.6 per cent," the company said.

"We see a positive growth momentum in volumes and are confident of achieving our annual guidance for revenues and profits. We continue to pursue our differentiation strategy based on branding, innovation, sustainability and our patented traceability solution," Welspun Group Chairman B K Goenka said.

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

Target Corporation after an extensive investigation, confirmed that Welspun substituted another type of on-Egyptian cotton when producing bed sheets and pillows between August 2014 and July 2016.

Following this, Walmart stopped selling Welspun India's Egyptian cotton products. Welspun India had, later, appointed consultancy firm Ernst & Young to look into the alleged lapses.

Welspun India is part of USD 2.3 billion Welspun Group.

The company's stock was trading 2.97 per cent higher at Rs 53.70 per scrip on the BSE today.