Market leader in plastics and textiles space, Sintex Industries has reported dull performance for the first quarter of FY16, which is traditionally also a weak quarter, in relation in Q4 of last year. On comparison with the same quarter last year, performance is marginally better, though.

Q1FY16 revenue dipped to Rs. 1,471 crore, from Rs. 2,176 crore in Q4FY15, although moderately higher than Rs. 1,345 crore in Q1FY15. Operating profit for three months ended 30-06-15 came in at Rs. 156 crore, versus Rs. 153 crore YoY and Rs. 337 crore QoQ, while net profit stood at Rs. 69 crore, leading to EPS of Rs. 1.60 for Q1FY16. EPS for Q4FY15 was Rs. 5.15 while that of Q1FY15 was Rs. 1.93. Of the 3 segments, viz. textiles, plastics and infra structure, the latter has reported decline in topline to Rs. 54 crore in the quarter gone by, from Rs. 114 crore in June 2014, which in turn lead to operating profits for the segment dropped by nearly 75% to Rs. 2.15 crore (as against Rs. 8.37 crore). Also, margins of the plastics business, which accounts for over 80% of the topline, suffered heavily – contracting from 13.0% in Q1FY15 to 11.3% in Q1FY16.  

Despite the muted performance, company seems very optimistic about the future. It has been receiving a lot of enquiries, mainly from the government front, which it is hopeful of getting converted into orders. On the expansion front too, spinning project of 1 lakh spindles is on track to commence production from September 2015.