Indian textile maker Welspun Living, which exports to global retailers including Walmart and Tesco, posted a slump in ​its quarterly profit on Thursday, as a US tariff-triggered ​slowdown in exports squeezed its margins.

Welspun’s consolidated net profit came ‌in at 2.1 million rupees ($23,178.81) for the three-month period ended December 31, sharply down from 1.21 billion rupees in the year-ago period.

Results included a one-time charge of 189.7 million rupees linked to India’s new labour codes, implemented last November as part of the government’s efforts to simplify regulations and encourage investment.

Revenue from operations fell 9 per cent to 22.62 billion rupees, while its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin narrowed by 493 basis points to 7.7 per cent.

KEY ‌CONTEXT

Indian textile exporters including Welspun and Trident reeled under the impact of steep US tariffs for several months, with some seeking new buyers in Europe and offering discounts to US customers to stay afloat.

These companies are now expecting better quarters as US President Donald Trump announced a trade deal with India, slashing tariffs on Indian goods, just ​days after New Delhi struck a separate trade agreement with the European Union.

Welspun Living, ‌which supplies to many US retailers including Costco Wholesale and Target, derives more than 60 per cent of its revenue from the United ​States ‌and roughly 18 per cent from the UK and Europe.