Welspun India: Raw Material Costs Hurt Profits
MUMBAI, India--Welspun India, the parent company of Welspun USA, said its fiscal second-quarter operating profit fell about 7 percent to approximately $22.2 million, after the currency conversion.
Profitability fell in spite of a 24 percent gain in sales for the quarter, which totaled approximately $123.4 million after the conversion. In a statement announcing the quarterly results, Welspun India said the decline in profitability occurred because of huge increases in raw material costs, in particular cotton, yarn, crude oil and energy.
According to the statement, "In the U.S., the positive trend of growth continues. Going forward, we intend on leveraging new and existing opportunities by achieving profitability in our hospitality business as well."