Driven by improved operational efficiency and lower interest outgo, Sutlej Textiles and Industries today reported an over 70 per cent jump in net profit to Rs 131 crore during 2013-14, against Rs 77 crore during the previous year.
The flagship textile company of the K K Birla Group recorded a 12 per cent growth in revenues to Rs 1,881 crore during FY'14 as against Rs 1,680 crore in the previous year, on account of improved realisations and higher off take of value added products.
"Profitability was buoyed mainly as a result of optimal spindle utilisation, thrust on value added products and prudent cost management.
"In addition, our in-house R&D spins out innovative qualities and strategies for optimisation of product cost, resulting in improved operational performance of the business," Chairman of Sutlej Textiles and Industries C S Nopany said.
The EBITDA for the period under review stood at Rs 306 crore against Rs 234 crore registered during 2012-13, a rise of 31 per cent driven by improved spindle efficiency and cost optimisation, the company said in a statement.
The company also performed well in the fourth quarter of 2013-14, registering a 31.3 per cent growth in net profit to Rs 21 crore, from Rs 16 crore in the year-ago period.
During January-March 2014, Sutlej Textiles reported 11.6 per cent growth in revenues to Rs 482 crore, from Rs 432 crore in the same quarter of the previous year.
The company's Board recommended, subject to approval of shareholders, a dividend of Rs 8 per fully paid up equity shares of Rs 10 each.
However, shares of the company ended in the red, down 6.09 per cent on the Bombay Stock Exchange at Rs 249.20.
