Sutlej Textiles extends rally on strong Q1 results

The stock hit a record high of Rs 780 and rallied 18% in past three trading sessions from Rs 662 on August 4.

Sutlej Textiles and Industries extended gains for the third straight session rising 8% to Rs 780 on the BSE after reporting 43% year-on-year (YoY) growth in net profit at Rs 45.09 crore for the quarter ended June 30, 2016 (Q1FY17). The textiles company had a profit of Rs 31.55 crore in the same quarter last year.

The stock trading at its record high level and has rallied 18% in past three trading sessions from Rs 662 on August 4. The Nifty 50 index was up 1% during the same period.

Total income of the company grew 19% at Rs 561 crore in June quarter against Rs 470 crore in the corresponding quarter of previous year.

The Ebitda (earnings before interest, taxes, depreciation and amortisation) margin improved by 45 basis points to 15.4% from 14.95% in last year.

The company attributed improved performance during the quarter due to operational efficiency, debottlenecking and changing product mix.

Commenting on the results, C.S. Nopany, executive chairman, Sutlej Textiles 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.

“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”, he added.

At 12:23 pm, the stock was up 5% at Rs 755 on the NSE, as compared to 0.73% fall in the benchmark index. A combined 73,606 shares changed hands on the counter on the NSE and BSE.