Filatex India rises after robust Q4 performance

Filatex India rose 1.87% to Rs 76.25 after the company reported a net profit of Rs 118.4 crore in Q4 FY21, higher than net profit of Rs 21 crore in Q4 FY20.

Net sales during the quarter increased by 27.8% year-on-year (YoY) to Rs 852.76 crore. EBITDA stood at Rs 188.7 crore in the fouth quarter compared with Rs 62.3 crore in the same period last year. EBITDA margin was at 22.1% as on 31 March 2021 as compared to 9.3% as on 31 March 2020.

Filatex India recorded 36.5% jump in net profit to Rs 165.83 crore on 19.9% fall in net sales to Rs 2227.15 crore in the year ended on 31 March 2021 over the year ended on 31 March 2020.

Sales quantity declined 19.7% to 2,59,905 MT in FY21 as against 3,23,545 MT in FY20.

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.

Madhu Sudhan Bhageria, chairman & managing director, stated, Continuing the trend from Q3FY21, the prices and margins remained strong in the domestic market. Firm demand along with nearly full capacity utilization of value-added product contributed to the improvement in margins. Commissioning activities for our 30 MW captive power plant at our Dahej unit have started. Despite facing manpower constraints due to the second wave of COVID-19 in India, we are aiming to commission the power plant this month. The annual impact of savings in energy costs will be in the magnitude of Rs 45 crore.

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

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