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Sutlej Textiles jumps on capacity expansion

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Capital Market
Last Updated : Sep 18 2014 | 12:01 PM IST

Sutlej Textiles & Industries surged 5.47% to Rs 407 at 11:40 IST on BSE after the company announced the expansion of operations at its home textiles division at a cost of Rs 88.50 crore and also closure of one of its fabric unit.

Sutlej Textiles & Industries (Sutlej)'s board of directors at its meeting held during trading hours on Wednesday, 17 September 2014, approved the proposals. The stock had risen 0.22% to settle at Rs 385.90 on that day.

Meanwhile, the S&P BSE Sensex was up 293.77 points or 1.1% at 26,925.06.

On BSE, so far 4,451 shares were traded in the counter as against average daily volume of 4,198 shares in the past one quarter.

The stock hit a high of Rs 413 and a low of Rs 385.15 so far during the day. The stock had hit a record high of Rs 420 on 16 September 2014. The stock had hit a 52-week low of Rs 136.10 on 20 September 2013.

The stock had outperformed the market over the past one month till 17 September 2014, surging 14.19% compared with the Sensex's 2.02% rise. The stock had, however, underperformed the market in past one quarter, advancing 1.94% as against Sensex's 4.35% rise.

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The small-cap textile company has equity capital of Rs 10.92 crore. Face value per share is Rs 10.

Sutlej after market hours on Wednesday, 17 September 2014, announced the expansion of operations at one of its unit viz. Damanganga Home Textiles, Daheli, Bhilad at Gujarat at a cost of Rs 88.50 crore. The project will be implemented in FY 2015-16 and the same will result in increasing its capacities in existing facility to 9.6 million meters per annum from 2.5 million metres per annum.

The company also announced the closure of operations of one of its unit viz, Damanganga Fabrics, Daheli, Bhilad at Gujarat in view of its uneconomic working.

Sutlej said that the company's decision to expand operations in Home Textile Division will ensure further strengthening of its end to end operations - yarns to Home Textile.

Sutlej Textiles & Industries' net profit surged 26.8% to Rs 35.74 crore on 7.2% growth in net sales to Rs 469.91 crore in Q1 June 2014 over Q1 June 2013.

Sutlej Textiles excels in all stages of textiles productions. Its versatile production facilities are vertically integrated, from spinning and weaving to dying and finishing to making apparel.

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First Published: Sep 18 2014 | 11:37 AM IST

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