Mafatlal Inds

The stock price was on a steady climb yesterday after it announced its Q4FY16 numbers. This company, once the doyen of Indian textile industry, posted a 57% (YOY) decline in net profit for the quarter at Rs.6 crore. Yet the market felt this was good enough to push the stock price strongly into the green. This was because in Q4FY15, the company has an extraordinary income of Rs.9 crore, which it earned as profit on sale of fixed assets and investment properties. That had pushed up the profit and led to a higher base effect.  Of we remove this income, net profit in previous Q4 stood at Rs.5 crore and in Q4FY16, net profit was actually up 20%.

Its net sales for the quarter was up 60% at Rs.399 crore. The company ended FY16 with a 26% drop in net profit at Rs.17 crore and net sales rose 31% at Rs.1295 crore. Its debt currently stands at Rs.208 crore, up from Rs.135 crore in FY15.