 "Sutlej Textiles hits record high on strong Q2 results")
Sutlej Textiles & Industries has rallied 8% to Rs 870, also its record high on BSE, after the company posted a strong 58% year on year (YoY) growth in net profit at Rs 52 crore for the quarter ended September 30, 2016 (Q2FY17). The company had profit of Rs 33 crore in the same quarter last year.
Total income grew 9.6% at Rs 567 crore in Q2FY17 against Rs 518 crore in Q2FY16. EBITDA ((earnings before interest, taxes, depreciation, and amortization) margin improved 200 basis points to 16.25% from 14.25%.
Commenting on the results, Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd said “The second quarter of the year continued to witness challenges due to global slowdown and stressed rural economy. Sutlej was able to offset these strong headwinds by its prudent raw material purchasing policy in a volatile cotton fiber market by maintaining sufficient cotton inventory at lower prices”.
With normal monsoon, implementation of 7th pay commission, one rank one pension and other Government initiatives, we are optimistic about the future. I hope with ongoing expansion projects to scale up the production of value added yarns and home textiles the company will be able to deliver better performance in coming years, he added.
In past six-months, the stock outperformed the market by surging 75%, as compared to 9% rise in the S&P BSE Sensex.
At 02:49 pm, the stock was up 6% at Rs 856, after hitting an intra-day low of Rs 786 on BSE. A combined 117,129 shares changed hands on the counter on BSE and NSE.
Total income grew 9.6% at Rs 567 crore in Q2FY17 against Rs 518 crore in Q2FY16. EBITDA ((earnings before interest, taxes, depreciation, and amortization) margin improved 200 basis points to 16.25% from 14.25%.
Commenting on the results, Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd said “The second quarter of the year continued to witness challenges due to global slowdown and stressed rural economy. Sutlej was able to offset these strong headwinds by its prudent raw material purchasing policy in a volatile cotton fiber market by maintaining sufficient cotton inventory at lower prices”.
With normal monsoon, implementation of 7th pay commission, one rank one pension and other Government initiatives, we are optimistic about the future. I hope with ongoing expansion projects to scale up the production of value added yarns and home textiles the company will be able to deliver better performance in coming years, he added.
In past six-months, the stock outperformed the market by surging 75%, as compared to 9% rise in the S&P BSE Sensex.
At 02:49 pm, the stock was up 6% at Rs 856, after hitting an intra-day low of Rs 786 on BSE. A combined 117,129 shares changed hands on the counter on BSE and NSE.