Welspun Living Reports Significant Quarterly Profit Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy COST?
Source: Newsfilter
- Significant Profit Decline: Welspun Living reported a consolidated net profit of 2.1 million rupees ($23,178.81) for the quarter ending December 31, sharply down from 1.21 billion rupees in the same period last year, indicating severe profit pressure due to a slowdown in exports triggered by U.S. tariffs.
- Revenue Drop: The company's operational revenue fell by 9% to 22.62 billion rupees, while its EBITDA margin narrowed by 493 basis points to 7.7%, reflecting significant challenges to profitability amid intense market competition and cost pressures.
- One-Time Charge Impact: The results included a one-time charge of 189.7 million rupees related to India's new labor codes, highlighting the additional financial burden faced by the company in adapting to new regulations, which may affect future investment decisions.
- Improving Market Outlook: Despite current challenges, Welspun Living and other Indian textile exporters anticipate better quarters ahead as U.S. President Trump announced a trade deal with India that reduces tariffs on Indian goods, potentially opening new growth opportunities for the company.
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Analyst Views on COST
Wall Street analysts forecast COST stock price to rise
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 998.860
Low
769.00
Averages
1061
High
1205
Current: 998.860
Low
769.00
Averages
1061
High
1205
About COST
Costco Wholesale Corporation (Costco) operates membership warehouses and e-commerce sites that offer a selection of nationally branded and private-label products in a wide range of categories. The Company buys the majority of its merchandise directly from suppliers and route it to cross-docking consolidation points (depots) or directly to its warehouses. It operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. It also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia. The Company provides wide selection of merchandise, plus the convenience of specialty departments and exclusive member services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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