Welspun India shares extend fall, dip over 4% on Q2 net loss

Shares of textile firm Welspun India extended their losses for the second straight session on Wednesday, falling over 4% after the company reported a consolidated net loss of Rs 147.52 crore for the September quarter.

The stock, after a weak opening, fell 4% to Rs 59.50 on the BSE.

On the National Stock Exchange, it dived 4.11% to Rs 59.45.

In the previous session too, the stock had lost 4.5%.

Welspun India on Tuesday reported a consolidated net loss of Rs 147.52 crore for the second quarter ended September due to provisions for Egyptian cotton products supply issue.

It had posted a net profit of Rs 179.37 crore in the same period of the last financial year.

Income from operations stood at Rs 1,789.94 crore, up 21.81%, from Rs 1,469.44 crore in same period last year, Welspun India said in a BSE filing.

During the quarter, the company made a provision of Rs 500.48 crore on account of the Egyptian cotton issue.

In August, US retail giant Target Corporation terminated its contract with the Gujarat-based textile maker over alleged lapses in its products.