Sutlej Textiles and Industries Limited reported its financial results for the quarter 30th September 2017
Author(s): City Air NewsMumbai, October 25, 2017: Sutlej Textiles and Industries Limited (BSE: 532782 / NSE: SUTLEJTEX), a leading manufacturer and exporter of value added dyed yarns (synthetic & cotton mélange) with presence in Home Textiles,...
cityairnews
Oct 25, 2017 09:30
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Particulars (Rs crore) | Q2 FY18 | Q2 FY17 | % change wrt Q2 FY17 | H1 FY18 | H1 FY17 | % change wrt H1FY17 |
Total Income | 614.02 | 567.38 | 8.22 | 1272.75 | 1128.86 | 12.75 |
EBITDA | 84.80 | 92.20 | (8.03) | 161.08 | 178.64 | (9.83) |
EBITDA % | 13.81 | 16.25 | 244 bps | 12.66 | 15.82 | 317 bps |
PBDT | 69.47 | 82.60 | (15.90) | 129.92 | 155.76 | (16.59) |
PAT | 63.42 | 51.90 | 22.20 | 87.00 | 96.99 | (10.30) |
PAT % | 10.33 | 9.15 | 118 bps | 6.84 | 8.59 | -175 bps |
EPS( Diluted) (Rs.) | 3.87 | 3.17 |
| 5.31 | 5.92 |
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Commenting on the results, Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd said:
“The challenging domestic business environment continued in Q2FY18 due to lingering effect of demonetization and disruptions caused by implementation of GST. The unorganized sector which constitutes a large portion of the market was especially adversely affected with activity coming to virtually a standstill. The decision by the GST council to reduce the rate of duty on man-made yarn is certainly a positive which should improve the negative sentiment. Furthermore, a strong rupee and increasing input costs continued to put pressure on margins as product prices remained subdued. I am hopeful that confidence will be soon restored in the marketplace and will result in demand coming back.
I am happy that Sutlej has successfully completed itsacquisition of design, sales and distribution business along with the brand of American Silk Mills which will add strength to our Home Textiles portfolio.”
Key Developments:
Home Textiles Division – Acquisition of business in USA
? Company to Invest up to USD 5 Million in Wholly Owned Subsidiary in USA.
? Acquisition of Design, Sales, and Distribution (DS&D) business along with brand of America Silk Mills LLC (ASM) based at Plains, Pennsylvania. The acquisition will increase foot-print in the US market and will add strength of ASM to our Home textile portfolio.
Brownfield project - Capacity Expansion of Value Added Products at Bhawanimandi, Rajasthan
? Commenced commercial production of 35,280 spindles at Bhawanimandi, Rajasthan facility at a project cost of Rs. 270 crores.
? Commercial production of 17 no. Circular Knitting Machines is expected in Q3FY18.
? Project was funded by mix of internal accruals and term loans sanctioned under TUFS.
? Dedicated capacity focused towards producing Value Added Cotton and Cotton blended dyed and Mélange Yarn.
Brownfield project - Capacity Expansion of specialty synthetic yarn at Baddi, H.P.
? Brownfield capacity expansion plan of 28,800 spindles at Baddi, Himachal Pradesh facility.
? Estimated Project Cost is Rs.215 crore and project is likely to have commercial production in FY20.
? Incremental capacity would be dedicated towards manufacturing of 100% Polyester Industrial Yarn and other grey blended specialty synthetic yarn.
Modernization Update
? Invested around Rs. 31 crore during H1 FY 18 towards technology up-gradation and debottlenecking, etc. This will result in further improvement in efficiency and sustaining plant utilization.
? Intends to deploy further amount of Rs. 49 crore during FY18 towards technology up-gradation and debottlenecking etc.
Credit rating update during the year
? CARE affirmed STIL rating to CARE AA (Double A) for Long Term Bank Facilities (Term Loan) signifying high degree of safety regarding timely servicing of financial obligations. Such facilities carry very low credit risk.
? CARE A1+ (A One Plus) for Short Term Bank Facilities (Fund and Non-Fund based) and Commercial Paper is affirmed signifying very strong degree of safety regarding timely payment of financial obligations. Such facilities carry lowest credit risk.
