Sutlej Textiles and Industries today reported a profit after tax of 23.58 crore for the first quarter ended June against that of Rs 45.09 crore in the same quarter of last fiscal.
Total income of the company rose to Rs 658.73 crore in the April-June quarter this year from Rs 561.48 crore in the year-ago quarter, according to a regulatory filing.
The company attributed the fall in profit to domestic environment pressures like the disruption caused by demonetisation and the overhang of Goods and Services Tax introduction from July 1.
"The domestic environment pressures continued to adversely impact the textiles sector during Q1FY18. Following the disruption due to demonetisation, the imminent introduction of GST further dampened demand during this quarter.
"The implementation of GST has disrupted the unorganised sector who have been demanding its removal on fabrics and resolution of the inverted duty structure. As anticipated, margins during Q2FY18 continue to be under pressure due to the lack of domestic demand coupled with a strong rupee affecting exports," Chairman of Sutlej Textiles and Industries Limited C S Nopany said.
Sutlej Textiles and Industries is a manufacturer and exporter of value added dyed yarns with presence in home textiles.
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