Welspun India: Raw Material Costs Hurt Profits
November 2, 2010,
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.