SVP Global Textiles Ltd Reports Income of Rs. 294.10 crore in Q2FY23

Maj Gen OP Gulia, (Retd), CEO, SVP Global Ventures Ltd

Company has improved in operations and reduced the loss by substantial margins even after very high raw cotton prices.

Financial Highlights (Consolidated)                     (Amount in crore except EPS)

Particulars Q2 FY23 Q1 FY22 Q-O-Q Q2FY22
Income from Operations 294.1 280.5 4.9% 405.74
EBITDA 38.7 22.2 74.4% 93.06
EBITDA Margin (%) 13.8% 8.1% 566 bps 23.18%
Net Profit (20.4) (37.2)   40.85

Mumbai, November 15, 2022: SVP Global Textiles Ltd, one of the largest compact cotton yarn manufacturer and leading multinational textiles company has reported Total Income from Operations of Rs. 294.1 crore for the quarter ended September 2022, rise of 4.9% Q-o-Q from Rs. 280.5 crore reported in the quarter ended June 2022. EBITDA for Q2FY23 was reported at Rs.38.75 crore – higher by 74.4% Q-o-Q from Rs. 22.2 crore reported for Q1FY23. The company has improved on operational margins and reduced the loss from Rs. 37.15 Crore in Q1FY22 to 20.35 crore in Q2FY23 in spite of continued rising prices of raw cotton. 

Maj Gen OP Gulia, SM, VSM (retd), CEO, SVP Global Textiles Ltd said, “The raw material (cotton) prices continued to remain at higher levels in Q2FY23 which kept the textile industry under stress. However we have been able to reduce our losses by improving on operational and financial efficiencies along with some softening in cotton prices. The next quarter is looking very promising due to improved demand of apparel and cotton prices declining from a peak of Rs. 115,000 per candy to approximately Rs. 70,000 per candy now. The company is in process of analysing various restructuring options available with the company including sale of assets of subsidiaries which shall be used for reducing of debt.”

For the six months ended September 2022, company posted total Income from operations of Rs.574.58 crore and EBITDA of Rs.60.97 crore. The company is in process of restructuring the business and disposal of non-core assets. The Company has a vision to be a fully integrated textile company from Fibre-to-Fashion with forward integration into Fabric, Technical Textiles and Garments. The company has got the approval to set up a Technical textile facility at Jhalawar under Ministry of Textile PLI scheme.

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