Textile firm Welspun India recently reported a consolidated loss of Rs. 78.43 cr for the quarter ended 31 March, due to exceptional expense of Rs. 224.01 cr related to settlement of litigation in the US with regards to labelling and marketing of Egyptian cotton products. The company had posted a net profit of Rs. 89.86 cr for the corresponding period of the previous financial year. Welspun India said the company and its subsidiaries, which have been facing litigation in the US surrounding its premium cotton home textile products, have entered into a settlement agreement in the US.
“To avoid the burden, cost, and uncertainty of continued litigation in the United States surrounding the provenance of its premium cotton home textile products, the company and its subsidiaries have entered into a settlement agreement subsequent to year-end.