Sutlej Textiles and Industries today reported 34.64 per cent drop in profit after tax (PAT) at Rs 33.27 crore in the fourth quarter ended March 31. The company’s PAT stood at Rs 50.91 crore in the corresponding quarter of the previous financial year. Total income grew 9.03 per cent to Rs 612.03 crore from Rs 561.32 crore in the same quarter of FY16, said the manufacturer and exporter of value-added dyed yarns in a release here today. “The challenging domestic business environment continued post demonetisation well into Q4 of FY17.
The industry did start witnessing a slow revival of demand along with increase in raw material prices towards the end of Q4. “Strong foreign currency inflows and the consequential strengthening of rupee has put a dampener on exports creating more uncertainty. It is expected that margins would continue to be under pressure during the first half of 2018,” Sutlej Textiles and Industries Executive Chairman C S Nopany said.
He said the company will continue to focus on enhancing scale of operations in value-added products, which will ensure consistent performance coupled with growth. The company’s board has recommended a dividend of Rs 13 per equity share for the year ended March 2017. The total spinning capacity of the company currently stands at 416,616 spindles. It has a strong global clientele and exports to more than 60 countries.