Sutlej Text

The company is a manufacturer and exporter of value added dyed yarns (synthetic & cotton mélange) with presence in Home Textiles. It posted a set of good numbers for Q1FY17. Net sales rose 19% (YoY) at Rs.540 crore and net profit showed a 43% rise at Rs.45 crore. EBITDA was up 23% at Rs.86 crore and margins surged 45 bps to 15.4%. Its yarn unit showed an EBIT margin of 11.25% v/s 10.64% while home textiles EBIT rose more sharply, up from 4.85% to 9.58%.

Its expansion project for adding 35,280 spindles at Bhawanimandi, Rajasthan facility at a project cost of Rs. 270 crores is progressing as per schedule. The project is likely to commence commercial production in Q4 FY 2017. The process of trial run on first 9,000 spindles has commenced on 5th Aug 2016. Its Home textiles unit expansion project to increase installed capacity to 9.6 million metres p.a. is likely to complete by Q4 FY2017.

Equity capital stands at Rs.16.38 crore and EPS for the quarter came in at Rs.27.52 (FV of Rs.10).