Welspun Living quarterly profit nearly wiped out by US tariff impact
Welspun Living saw profits plunge as U.S. tariffs and new labor laws hit margins. The firm expects a rebound following recent trade deals with the U.S. and EU.
Insights:
Welspun Living reported a near-elimination of its consolidated net profit for the quarter ended December 31, as a slowdown in exports triggered by tariffs in the United States 
US squeezed margins. The textile manufacturer saw its quarterly net profit fall from 1.21 billion rupees a year earlier to just 2.1 million rupees. This sharp decline was compounded by a one-time charge of 189.7 million rupees linked to the new labour codes of the Indian government, which were implemented in November.
US squeezed margins. The textile manufacturer saw its quarterly net profit fall from 1.21 billion rupees a year earlier to just 2.1 million rupees. This sharp decline was compounded by a one-time charge of 189.7 million rupees linked to the new labour codes of the Indian government, which were implemented in November.Revenue for the company declined by 9% during the three-month period, while the EBITDA margin contracted by 493 basis points to 7.7%. The financial results highlight the company's significant sensitivity to international trade policy, as more than 60% of Welspun Living’s revenue is derived from the US market. The export slowdown comes at a time when trade developments between India 
IN, the American market, and the European Union are considered critical to the near-term outlook for major exporters.
IN, the American market, and the European Union are considered critical to the near-term outlook for major exporters.
