Ludlow Jute

After the blockbuster numbers of Q2FY17, the numbers for Q3 were very bad. If Q2 was about a bumper rise in net sales, supported by other income too, this Q3 was about lower topline and higher costs. Net sales (YoY) remained static at Rs.83 crore but sequentially dropped 25%. Costs rose 2.5% led by higher employee costs and other expenditure. EBITDA slipped 63% to Rs.2.32 crore.

The company ended the quarter with a net profit of a meagre Rs.48 lakh v/s Rs.5 crore in Q2 and Rs.1.5 crore in previous Q3. Blame it on the seasonal factor and demonetization but the market was not too happy which is why after hitting a new 52-week high in the morning, before the numbers came, the stock price tumbled down over 18%.

The company’s 9MFY17 net profit is at Rs.6.5 crore, already surpassed FY16 net profit of Rs.6 crore.  The equity is at Rs.10.80 crore and annualized EPS is at Rs.8 (FV of Rs.10).

Ludlow Jute happens to be the only jute mill in India built by the Americans. The mill was purchased by S.S Kanoria group from the Americans in 1977. They now hold 67.20% equity of the company. Its production capacity stands at 60,000 mtpa. It is stated to be one of the most modern and mechanized jute mills of India.