For the quarter ended June 2016, Suryalakshmi’s net profit was up 11.7 per cent. Total income for the first quarter of financial year ’17 was up six per cent. EBITDA too was up 10.3 per cent year on year. EBITDA margins came in at 15.2 per cent versus 14.1 per cent year on year.
The company expects a good growth both in top line and margins and expects a 10 per cent growth in top line for financial year ’17.
Realisations are expected to increase in the second and third quarter as cotton prices have also increased. The company has increased the earnings before interest, taxes, depreciation and amortisation (EBITDA) margins both in spinning and the denim divisions. It expects a better result in the second and the third quarters particularly from the spinning division.
Suryalakshmi is fulfilling the earlier contracts but for the new contracts it will be able to increase the realisation but that effect will be visible in the second and the third quarters.
Suryalakshmi is one of India’s leading integrated premium yarns to denim to garment manufacturing companies with over five decades of market leadership. With cutting-edge designs, the latest spinning technology and end to end manufacturing plants, it creates the finest yarn, premium denim and garments for leading private labels, fashion brands and retail chains in 29 countries across the globe.
