Indian textile firm Filatex focuses on domestic needs after 50 per cent profit hike in Q2

Indian textile firm Filatex has reported 50 per cent Y-o-Y surge in its net profit for Q2 results of FY ‘19 to Rs. 20.25 crores as compared to last year’s numbers of Rs. 13.52 crores. While the standout revenue was registered at Rs. 718 crores, a significant hike of 73 per cent on Y-o-Y basis compared to the corresponding FY that fetched Rs. 414 crores.

Notably, the earnings before interest, tax, depreciation (EBITDA) for the said period stood at Rs. 64.84 crores in the second quarter of FY ‘19 registering a surge of 79 per cent on Y-o-Y basis against last fiscal year’s numbers of 36.08 crores.

Furthermore, the company also marked out that the yarn production went from 44,916 tons to 64,787 tons. While chips production managed a significant rise of 90 per cent on annual basis going from 4502 tons to 8575 tons.

Furthermore, the overall Yarn production capacity witnessed a humongous rise in FY ‘19 and was recorded at 2,68,900 TPA against 1,91,500 TPA in FY ‘18.

Speaking on the positive results, Madhu Sudhan Bhageria, Chairman & MD, Filatex India cited that man-made fibres will witness a boost in demand overseas as well as in the domestic region, as the standard of living gets better.

“In India, as we move away from an agrarian economy, natural fibres are becoming expensive and more difficult to grow due to the paucity of arable land. Synthetic Fibres are gradually replacing them as they offer similar quality and properties at much affordable cost. At Filatex, we are preparing for this boom by manufacturing top quality and cost-effective yarns. We are expanding capacity to cater to the growing domestic needs along with our already flourishing exports business. We are also exploring technology for manufacturing value added fabrics which are currently being imported,” the chairman said.

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