Filatex India Q3 net profit spurts to Rs 66 crore

Filatex India's net profit surged 255.63% to Rs 66.04 crore in Q3 FY21 compared with Rs 18.57 crore in Q3 FY20.

Net sales during the quarter declined 2.19% year-on-year (YoY) to Rs 721.59 crore. Total expense declined 11.32% to Rs 632.21 crore in Q3 December 2020 as against Rs 712.94 crore in Q3 December 2019.

EBITDA stood at Rs 120.2 crore in third quarter as against Rs 55.9 crore in the corresponding quarter last fiscal. EBITDA margin was at 16.65% as on 30 December 2020 compared with 7.57% as on 30 December 2019.

Profit before tax in Q3 FY21 stood at Rs 91.18 crore, increasing by 3.48 times from Rs 26.23 crore in Q3 FY20.

Tax expense in the third quarter surged to Rs 25.14 crore as against Rs 7.66 crore in the same period last year.

Due to national lockdown and COVID-19 restrictions, the company's plants were shut for almost 8 weeks and upon resumption, were permitted to operate at an initial capacity of 30%. With a gradual increase in production, the company has finally achieved yarn capacity utilization exceeding 90% in September 2020.

Commenting on the performance for the quarter, Madhu Sudhan Bhageria, chairman & managing director, said: "After facing a pandemic setback in H1FY21, we are now making a comeback in H2FY21. This has been possible on account of a quick and steady recovery of the downstream textile sector and sharp recovery of demand. The commencement of additional Drawn Texturizing Yarn (DTY) capacity has also contributed to higher margins.

During the quarter, we commissioned captive rooftop solar power plants of 1.0 MW capacity at Dahej and 0.4 MW capacity at Dadra.

We are also currently in the process of setting up a 30 MW captive power plant at our Dahej unit. The project is progressing as per schedule and is expected to be commissioned by Q1FY22. The annual impact of savings in energy costs, upon completion of the project, will be in the magnitude of about Rs 45 crores annually."

Filatex India is in the business of manufacturing synthetic filament yarns having a wide range of products.

The scrip lost 2.05% to trade at Rs 69.35 on the BSE.

In the past one year, the stock has zoomed 69.52% while the benchmark Sensex has added 18.18% during the same period.

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