Mumbai (Maharashtra) [India], May 31 (ANI/PNN): The Textile Industry is undergoing continuous stress due to rising cotton prices during FY 22.
The pressure is likely to continue till the arrival of the new crop in Sep 22.
The spinning mills have taken a major hit. In spite of the prevailing situation, SVP Global Textiles Ltd has reported financial results in FY21-22 with a net profit of Rs 71.28 crore (Net Profit Margin 4.00 per cent) for FY22 as against a net profit of Rs. 24.85 crore (Net Profit Margin 1.75 per cent) in the corresponding period last year, a growth of 186.84 per cent. Income from operations for FY22 was reported at Rs. 1778.37 crore, higher by 25.03 per cent over the previous fiscal's same period income of Rs. 1422.40 crore. EBITDA for FY22 was reported at Rs. 303.61 crore (EBITDA Margin 17.07 per cent), a rise of 29.64 per cent compared to EBITDA of Rs. 234.19 crore (EBITDA Margin 16.46 per cent) in FY21. EPS for FY22 was reported at Rs. 5.67 per share as compared to Rs. 1.98 per share in FY21.
The Board of Directors has decided to take adequate steps to substantially reduce the debt. In a major restructuring, the Company is adopting the assetless model and venturing into forward integration of the textile value chain.
Under the new model, it will be manufacturing Technical Textiles for which the approval of the Ministry of Textiles under the PLI Scheme has already been accorded. It will also be venturing into the garment segment as a B2C model and manufacture finished garments, innerwear and other consumer items, thereby creating a brand image of its own.
Commenting on the results and performance, Maj Gen OP Gulia, SM, VSM (Retd), CEO, SVP Global Textiles Ltd, said, "Company reported steady performance during FY22 backed by strong operational and financial growth in the testing times post-Covid. The current geopolitical situation, rising cotton and other input prices, along with problems in the supply chain and exports, had an adverse impact on the textile industry. The Company is taking various steps to reduce the debt and venture into the finished garment segment. The value addition will create a brand image and maximize value for shareholders in the near to medium term."
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