Mumbai, November 18, 2016: 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, today reported its financial results for the quarter and half year ended 30thSeptember 2016.
| Particulars (Rs crore) | Q2
FY17 |
Q2
FY16# |
%
change wrt Q2 FY16 |
H1
FY17 |
H1
FY16# |
%
change wrt H1 FY16 |
| Total Income | 567.38 | 517.81 | 9.57 | 1128.86 | 987.57 | 14.31 |
| EBITDA | 92.20 | 73.78 | 24.97 | 178.64 | 143.98 | 24.07 |
| EBITDA % | 16.25 | 14.25 | 200 bps | 15.82 | 14.58 | 124 bps |
| PBDT | 82.60 | 63.09 | 30.92 | 155.76 | 121.45 | 28.25 |
| PAT | 51.90 | 32.91 | 57.70 | 96.99 | 64.46 | 50.47 |
| PAT % | 9.15 | 6.36 | 279 bps | 8.59 | 6.53 | 206 bps |
| EPS(Diluted) (Rs.) | 31.68 | 20.09 | — | 59.20 | 39.35 | — |
# The financial results areexclusive of financial results of Birla Textile Mills as per Ind As
Commenting on the results, Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd said “The Second Quarter of the year continued to witness challenges due to global slowdown and stressed rural economy. Sutlej was able to offset these strong headwinds by its prudent raw material purchasing policy in a volatile cotton fiber market by maintaining sufficient cotton inventory at lower prices.
With normal monsoon, implementation of 7th pay commission, one rank one pension and other Government initiatives,we are optimistic about the future. I hope with ongoing expansion projects to scale up the production of value added yarns and Home Textiles the Company will be able to deliver better performance in coming years.”
|
Brownfield project – Capacity Expansion of Value Added Products at Bhawanimandi, Rajasthan
§ Work on the expansion project for adding 35,280 spindles at Bhawanimandi, Rajasthan facility at a project cost of Rs.270 crores is progressing satisfactorily.
§ At present, Trial run is going on 33,840 spindles. The project is likely to commence commercial production in Q4 FY 2017 as per the schedule.
§ 17 no. Circular Knitting Machines will also be installed by June 2017.
§ Project is being 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.
Home Textiles Division expansion on track
§ Expansion project to increase installed capacity to 9.6 million metres p.a. is progressing as per schedule and likely to complete by Q4 FY 2017.
§ Out of 54 looms to be installed, the Company has installed 36 looms and has placed order for 18 looms. The present installed capacity has reached to 8.4 million metres p.a.
§ Total project cost of Rs. 88.5 crore is being funded by mix of internal accruals and term loans sanctioned under TUFS.
§ Increased presence in Home Textile segment will result in further strengthening of Company’s end to end operations – Yarn to Home Textile.
Modernization Update
§ Invested around Rs.38crore during H1 FY 2017, 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.46 crore during the year towards technology up-gradation and debottlenecking, etc.
Credit rating upgrade during the year
§ CARE upgraded STIL rating to CARE AA (Double A)for Long Term Bank Facilities (Term Loan) and for Long Term Bank facilities (Fund based) from CARE AA-(Double A minus) signifying high degree of safetyregarding 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.
Corporate Comm India(CCI Newswire)
