Welspun India Q3 profit misses view as inflation bites

Welspun Living

30/01/2023 10:42

BENGALURU, Jan 30 (Reuters) - Home textiles manufacturer
Welspun India  WLSP.NS  reported a bigger-than-expected 68%
slump in third-quarter profit on Monday as rising inflation
pushed consumers to scale back spending on discretionary items.
    The bedsheet-maker's consolidated net profit fell to 423.8
million rupees ($5.20 million) for the quarter that ended Dec.
31 from 1.32 billion rupees a year earlier, Welspun India said
in an exchange filing. 
    Analysts had, on average, expected a profit of 609.5 million
rupees, according to Refinitiv IBES data.
    Textile manufacturers have been grappling with inflation as
companies struggled to pass on rising input costs while
consumers diverted their savings to essentials such as food and
fuel.
    "The global environment remained challenging during Q3 FY23
due to inflation and slowdown across our key markets," the
company said in a statement.
    The conglomerate's earnings before interest, taxes,
depreciation, and amortization(EBITDA) slumped 31%.
    The home textile business, which accounts for 94% of
revenue, reported a 22% fall in revenue, while EBITDA margins
for the segment contracted to 11.7%.
    Overall revenue dropped nearly 23% to 18.69 billion rupees.
    Separately on Monday, the company said it entered a brand
licensing partnership with The Walt Disney Company  DIS.N  to
expand its global brand portfolio. 
    ($1 = 81.5630 Indian rupees)
 (Reporting by Aleef Jahan in Bengaluru; Editing by Dhanya Ann
Thoppil)
 ((aleefjahan.cs@thomsonreuters.com;))