Mumbai: SVP Global Textiles Ltd, one of the largest compact cotton yarn manufacturers and leading multinational textiles company, has reported a Total Income from Operations of Rs. 301.81 crores for the quarter ended December 2022, a rise of 2.62% Q-o-Q from Rs. 294.10 crores reported in the quarter ended September 2022. EBITDA for Q3FY23 was reported at Rs.75.83 crore – higher by 95.7% Q-o-Q from Rs. 38.75 crores reported for Q2FY23. The company has improved on operational margins and reduced the loss from Rs. 20.35 Crore in Q2FY23 to Rs. 5.54 crore in Q3FY23. Going forward, the company aims for substantial debt reduction and a de-leverage balance sheet while adopting an asset-light business model.
Q3FY23 Business Highlights:-
– EBITDA Margins more than double to 25.12% and able to reduce losses substantially.
– Company to focus on debt reduction and de-leveraging Balance Sheet.
– The company has the vision to be a fully integrated textile company from Fibre-to-Fashion with forward integration into Fabric, Technical Textiles and Garments to create a brand of its own.
– Board has reviewed to execution of pending projects so that benefits under the PLI scheme can be availed.
For the nine months ended Dec 2022, the company has reported Income from operations of Rs. 876.39 crores with EBITDA of Rs. 136.8 crores. The board of directors reviewed and discussed earlier intimation of the selection of SVP Global Textiles Ltd under the PLI scheme to execute the earliest pending projects so that the benefits under the PLI scheme can be availed.
Financial Highlights (Consolidated) (Amount in crore except EPS)
|
Particulars |
Q3 FY23 |
Q2 FY23 |
Q-O-Q |
| Income from Operations |
301.81 |
294.10 |
2.62% |
| EBITDA |
75.83 |
38.75 |
95.68% |
| EBITDA Margin (%) |
25.12% |
13.18% |
1194 bps |
| Net Profit |
(5.54) |
(20.35) |
|
Maj Gen OP Gulia, SM, VSM (retd), CEO, SVP Global Textiles Ltd said, “We are very pleased with the company’s performance in Q3FY23 and expect to report even better growth numbers in the coming quarters. Inspite of high raw material prices, company was able to reduce losses during the quarter by improving on operational and financial efficiencies resulting in substantial improvement in EBITDA margins to 25.12% in December quarter. The company is analysing various restructuring options available to the company. It aims substantial debt reduction by disposal of non-core assets, de-leverage balance sheet while adopting asset-light business.”
The company has the vision to be a fully integrated textile company from Fibre-to-Fashion with forward integration into Fabric, Technical Textiles and Garments to create a brand of its own.
