Updated: May 31, 2022 3:48 p.m. STI
Bombay (Maharashtra) [India]May 31 (ANI/PNN): The textile industry is under continued stress due to rising cotton prices in FY22.
The pressure is expected to continue until the arrival of the new crop on September 22.
Spinning mills have taken a hard hit. Despite the prevailing situation, SVP Global Textiles Ltd released financial results for FY21-22 with a net profit of Rs 71.28 crore (4.00% net profit margin) for FY22, against a net profit of 71.28 rupees. 24.85 crores (1.75% net profit margin) in the corresponding period last year, representing a growth of 186.84%. Operating income for FY22 was reported at Rs. 1778.37 crore, 25.03% higher than the revenue for the same period in the prior year of Rs. 1422.40 crore. EBITDA for FY22 was reported at Rs. 303.61 crore (EBITDA margin of 17.07%), an increase of 29.64% from EBITDA of Rs. 234.19 crore (EBITDA margin of EBITDA by 16.46%) in FY21. EPS for FY22 was reported at Rs. 5.67 per share compared to Rs. 1.98 per share in FY21.
The Board of Directors has decided to take appropriate measures to substantially reduce the debt. In a major restructuring, the Company adopts the assetless model and ventures into the downstream integration of the textile value chain.
Under the new model, it will manufacture technical textiles for which approval from the Ministry of Textiles under the PLI program has already been granted. It will also venture into the apparel segment as a B2C model and manufacture finished garments, loungewear and other consumer items, thereby creating its own brand image.
Commenting on the results and performance, Major General OP Gulia, SM, VSM (Retd), CEO, SVP Global Textiles Ltd said, “The company delivered a steady performance in FY22, supported by a strong operational and financial growth in post-Covid test periods The current geopolitical situation, rising prices for cotton and other inputs, as well as supply chain and export issues, have had a negative impact on the textile industry. The company is taking various steps to reduce debt and venture into the finished garments segment. The value addition will build brand image and maximize shareholder value in the short to medium term.”
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