Welspun Living reported a weak set of numbers for the December quarter, with profitability coming under sharp pressure even as revenue decline remained relatively moderate.
On a consolidated year-on-year basis, revenue fell 9.1% to Rs 2,262 crore compared with Rs 2,490 crore in the same quarter last year. The drop in topline was accompanied by a steep contraction in operating performance. EBITDA declined 42.8% to Rs 160 crore from Rs 280 crore, while EBITDA margin narrowed to 7.1% from 11.3%, reflecting significant margin pressure during the quarter.
The impact was even more visible at the bottom line level. Net profit plunged 99.8% to just Rs 21 lakh, compared with Rs 121 crore in the corresponding period last year. The company said the quarter included a one-time cost of Rs 19 crore related to the implementation of new labour codes, which weighed on overall profitability.
The sharp fall in margins and earnings suggests higher cost pressures and operational challenges during the quarter, with the one-off expense further denting reported profit. Investors are likely to closely watch management commentary on demand trends, cost control measures and margin recovery in the coming quarters.
