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Suryalata Spinning Mills Ltd.

BSE: 514138 Sector: Industrials
NSE: N.A. ISIN Code: INE132C01027
BSE LIVE 14:38 | 17 Nov 137.00 -2.00
(-1.44%)
OPEN

135.75

HIGH

137.00

LOW

135.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 135.75
PREVIOUS CLOSE 139.00
VOLUME 830
52-Week high 184.95
52-Week low 123.00
P/E 6.73
Mkt Cap.(Rs cr) 59
Buy Price 134.00
Buy Qty 1.00
Sell Price 137.00
Sell Qty 80.00
OPEN 135.75
CLOSE 139.00
VOLUME 830
52-Week high 184.95
52-Week low 123.00
P/E 6.73
Mkt Cap.(Rs cr) 59
Buy Price 134.00
Buy Qty 1.00
Sell Price 137.00
Sell Qty 80.00

Suryalata Spinning Mills Ltd. (SURYALATASPG) - Chairman Speech

Company chairman speech

"Our objective is to outperform the market and continue to deliver sustainablegrowth and profits in the hands of our stakeholders."

There is no doubt that FY2016-17 was a difficult year one in which the challengesfaced by our industry were exposed significantly. Continued falls in commodity pricesfalling crude oil prices and increasing raw material prices did put pressure on overallindustry scenario. These factors did translate into slower off-take of yarn as severalfabric manufacturers faced reduced demand from end users. The biggest challenge came inquarter three of the current fiscal when demonetization rule came into effectimmediately. The positives of this reform cannot be written off however its suddenimplementation caught several industries and consumers off-guard. The textile industry wasamong the several industries hit hard with the consumer struggling with cash and itseffect being passed to the manufacturer.

At the backdrop of these challenging times we at Suryalata continued with oursteady business growth delivering business excellence. Our topline remained flat at H35108 Lakhs (against H 35684 Lakhs in previous year) and PAT was registered at H 944Lakhs (against H 961 Lakhs in previous year). We reported a healthy EBIDTA margin at8.43% generating a cash profit of H 1756 Lakhs during the year under review.

At a time when industry has appeared to emerge from its cyclical phase costcontrol and qualitative products now take centre stage to help companies garner a largermarket share. With this in mind we made significant investments in capacity to addressthe growing demand and align our production to changing market demands. As we hadmentioned in the previous year our business model now stands firm to wither subtlemacroeconomic challenges and provide sustainable returns. So while industry reporteddismal numbers we reported numbers outperforming the industry.

We continued our focus on producing synthetic yarns as we witnessed growing demandof affordable synthetic alternatives. A similar increasing trend is witnessed on globalscale as well where synthetic yarns continue to have an increasing share in the overallyarn segment. With favourable textile policies and push for ‘Make in India' thetextile industry is positioned to grow in the coming years. Incentives to push forexports higher investments from foreign and GST roll out are expected to give a push toorganized textile players. Being an integral player in the textile value chain we realizeour product mix competitive pricing and market presence across geographies will help usreach new scale of success.

With our current capacity being scaled up to 93264 spindles we are well placed toaddress market demand from our customers. Our capacity expansion was a cautious approachto achieve long-term sustainability at the peak of industry uptrend with a strong balancesheet. As we continue to respond to unfavourable market conditions we are taking steps toensure our financial resilience in the future through discipline in capital allocation andfocus on profitability. We remain focused on generating healthy cash flow and improvemargins through sustainable cost reductions and higher operational efficiencies.

Suryalata Spinning has weathered another difficult year but remains on a solid andsustainable footing for long-term value creation for its stakeholders. I look forward withgreat optimism to another exciting year and thank all of our employees and management fortheir hard work over year after year.