Mumbai, Maharashtra:Sutlej Textiles and Industries Limited (BSE: 532782 / NSE: SUTLEJTEX), a leading manufacturer and exporter of value added dyed yarns (synthetic & cotton mélange) with the presence in Home Textiles, today reported its financial performance for the quarter ended 30th June 2016. Highlights of the Un-audited financial results as compared with corresponding quarter of previous year are:-
|Particulars (Rs crore)||Q1*
wrt Q1 FY16
|EPS( Diluted) (Rs.)||27.52||19.26||—|
*Based on Ind AS
# The financial results are exclusive 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 Company’s concentrated efforts of focusing on specialty yarn products and enhancing home textile capacity facilitated in maintaining the growth momentum during this quarter, as the world grappled with new dimensions of economic uncertainty and stressed rural economy in the country.Our consistent & healthy financial performance enabled upgrading of credit rating to CARE AA for long term bank facilities (Term Loan / Fund based facilities).
With the forecast of above-normal monsoon, implementation of 7th pay commission 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 as per schedule. The project is likely to commence commercial production in Q4 FY 2017.
- Process of Trial run on first 9,000 spindles has commenced today i.e. 5th Aug 2016.
- Project is being funded by mix of internal accruals and term loans sanctioned under TUFS.
- Dedicated capacity focused towards producing Value Added 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 FY2017.
- Out of 54looms 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
- Invested around Rs.17crore during the quarter, towards technology up-gradation and debottlenecking, etc. This will result in improvement of efficiency and sustaining plant utilization.
- Acquired 13 acres of Freehold land near Birla Textile Mills, Baddi at a cost of around Rs 14 crore.
- Intends to deploy further amount of ~Rs. 67 crore during the year towards technology up-gradation and debottlenecking, etc.
Credit rating upgrade during the year
- CARE upgrades 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 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 NonFund based) and Commercial Paper is affirmed signifying very strong degree of safety regarding timely payment of financial obligations. Such facilities carry lowest credit risk.
- For FY 2016-17, Company has discontinued rating engagement with India Ratings and Research Pvt Ltd in view of non-requirement of the same under Basel II norms of RBI.
|About Sutlej Textiles and Industries Limited|
Sutlej Textiles and Industries Ltd (STIL) (part of S&P BSE SMALL CAP Index), an ISO 9001:2008 certified Company, is one of India’s largest spun dyed yarn manufacturer. Under the leadership of Mr. C S Nopany, Executive Chairman of STIL, a Chartered Accountant and Master of Science in Industrial Administration from Carnegie Mellon University, the Company has focused on value-added yarns and home textiles. Over the years, the Company has also successfully carved out a niche for itself and is holding leadership position in the dyed yarn and cotton mélange yarn segment. The total spinning capacity of the Company presently stands at 377,688 spindles.
STIL has a strong global clientele and exports to more than55 countries. It has presence across major developed and emerging economies like Australia, Argentina, Bangladesh, Bahrain, Belgium, Brazil, Canada, China, Chile, Cuba, Egypt, France, Germany, Hong Kong, Italy, Morocco, New Zealand, Peru, Philippines, Poland, Portugal, Russia, Saudi Arabia, Sri Lanka, Turkey, United States of America, the United Arab Emirates (UAE), and The United Kingdom, among others.
STIL has also been recipient of numerous prestigious awards like Niryat Shree – Gold trophy award for its Export performance in spun yarn; Gold trophy by SRTEPC for best performance for export of fabrics to focused Latin American countries and Silver trophy by SRTEPC for Second best export performance in spun yarn category.