Sutlej Textiles Q1 turnover rises 18.67%
Its net profit, however, stood at Rs 137 mn in Q1 as against Rs 155 mn earlier, showing a dip of 11.61%.
By ET Online | Updated:
New Delhi: Sutlej Textiles and Industries Ltd has reported a turnover of Rs 4138 million during the quarter ended June 30, 2011, as against Rs 3487 million during the corresponding quarter of the previous year, showing an increase of 18.67%. Its net profit, however, stood at Rs 137 mn as against Rs 155 mn earlier, showing a dip of 11.61%.
Correction in the rates of raw-materials - cotton, polyester, viscose etc, - started in April 2011 and is still continuing. However, correction in yarn rates has been steep and faster that slowed demand, depressed realizations and squeezed margins. Hardening interest rate has further put pressure on margins, the company said.
Commenting on the financial results, C S Nopany, chairman, Sutlej Textiles and Industries, said, “The textile industry is going through an upheaval due to significant declines in the prices of raw materials and finished goods creating uncertainty amongst the mind of buyers. I am glad that Sutlej has been able to minimize the impact of depressed markets in QI and is geared up to meet the challenges being posed by the difficult market conditions.”
Sutlej has a spinning capacity of 2.53 lakhs spindles at its two spinning units at Bhawanimandi (Rajasthan) and Kathua (J&K). It also has a capacity to produce 4.9 million metres of fabrics, 2 million metres of home textiles, 1.6 million pieces of trousers and 20 million metres of fabric processing per annum at Bhilad (Gujarat).
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