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Sutlej Textiles and Industries, a small cap company, closed today with a market valuation of ₹781.30 Cr.
PremiumSutlej Textiles and Industries, a small cap company, closed today with a market valuation of ₹781.30 Cr. India's top manufacturer of cotton yarn and textiles is Sutlej Textile.
“The Board also considered and recommended a dividend of Re. 1/- (100%) per equity share of Re. 1/- each for the financial year ended 31st March, 2023, subject to approval of the shareholders at the ensuing 18th AGM of the Company. The dividend, if approved by the shareholders shall be paid within the prescribed time after the conclusion of the ensuing 18th AGM," said Sutlej Textiles in a stock exchange filing.
Sutlej Textiles and Industries has announced an equity dividend of 185.00% at a face value of ₹1, or ₹1.85 per share, for the fiscal year that ended in March 2022, or FY22. The dividend yield at the current share price of Rs. 47.69 is 3.88%. The company has a solid track record of dividend declarations during the past five years. Sutlej Textiles & Industries Ltd. has issued 16 dividends since September 19, 2007, according to Trendlyne statistics.
During Q4FY23, the company recorded a net income of ₹752 Cr down by 17% YoY from ₹901 Cr during Q4FY22. The company said its EBITDA stood at ₹34 Cr during the quarter ended March 2023 down by 75% YoY from ₹133 Cr recorded during the year-ago quarter.
The company’s PBDT or Profit Before Depreciation and Tax stood at ₹17 Cr during the quarter under review down by 86% YoY from ₹118 Cr recorded during the same quarter of FY22. Sutlej Textiles reported a net loss of ₹24 Cr during Q4FY23 as against a net profit of ₹52 Cr reported during Q4FY22.
Mr. C. S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said “For the Indian Textile Sector, Fiscal 2023 was a mixed bag. After a strong Fiscal 2022, we entered the year with geopolitical tensions and soaring raw material costs. As the year progressed, the fall out of some of those events had a bearing on our demand centers such as the USA, EU and UK. Towards the latter part of the year, raw material prices stabilized, but the overall operating environment and customer sentiments globally remains subdued. We are hopeful of a revival in the second half of the forthcoming year."
“The Government’s push at making India a textile hub is confidence inspiring, as is the FTA that is being pursued with large economies. At Sutlej, we are cautious, but optimistic about the sector and are continuing to forge ahead with our strategic expansion plan. As a multi-product, multi-market Company, our fungible manufacturing facilities provide us with the wherewithal to operate in challenging environments. We are hopeful that with our robust financial position, wide product offering and dedicated workforce, we will continue to deliver strong results and add value to all our stakeholders," C. S. Nopany further added.
A subsidiary of the K K Birla group, Sutlej Textiles and Industries Limited is one of India's leading producers of spun-coloured yarn. The company now has 422,208 spindles available for spinning. The company exports to more than 65 nations and has a sizable international clientele like Australia, Argentina, Bangladesh, Bahrain, Belgium, Brazil, Canada, China, Chile, Cuba, Egypt, France, Germany, Hong Kong, Italy, Morocco, New Zealand, Peru, Philippines, Poland, Portugal, Saudi Arabia, Sri Lanka, Turkey, United States of America, the United Arab Emirates (UAE), and The United Kingdom, etc.
The shares of Sutlej Textiles and Industries closed today on the BSE at ₹47.69 apiece level down by 8.73% from the previous close of ₹52.25. The stock touched a 52-week-high of ₹78.90 on (09/05/2022) and a 52-week-low of ₹38.25 on (28/03/2023), indicating that at the current market price, the stock is trading 39.55% below the 1 year high and 24.67% above the 1 year low.
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