India-based textile conglomerate SEL Manufacturing Company has clocked a remarkable 73.92 per cent growth in its consolidated net profit at Rs 54.93 crore for the six month ended September 30, 2013, driven by sustained operational stability, thanks to strong market position, geographic spread of scale and low-cost but high quality products.
The company, engaged in the manufacturing, processing & trading of yarn, fabric, readymade garments and towels, has reported a consolidated net profit of Rs 31.58 crore in the first six months ended September 30, 2012.
During the six months under review, the company witnessed a 57.44 per cent growth in its total revenue which stood at Rs 2093.83 crore from Rs 1329.89 crore in the same period a year ago. Volumes were boosted by robust demand for the value-added yarn from Europe and rupee’s depreciation against the US dollar. The company has been ranked as the 10th largest in analysis of the Europe’s top 100 Yarn & Thread Suppliers.
Despite the global volatile environment, the company has posted strong growth for the second consecutive quarter in FY’14 as it remained committed to drive the business towards delivering consistent, competitive, profitable and responsible growth.
Meanwhile, the (Standalone) revenue from operations of the company stood at Rs. 1677.03 crore in H1, FY’14, as compared to Rs. 1141.42 crore during the previous year, a growth of 46.92 per cent year-on-year. The profit after tax (Standalone) stood at Rs. 42.61 crore for the six month ended 30.09.2013, as compared to Rs. 27.97 crore during the previous year, a growth of 52.37 per cent Y-o-Y.
Given the evolving economic landscape, the company aims to continue growth momentum by successfully implementing its expansion projects. Continuing on the upward growth curve, the Group has commissioned another integrated textile park in Punjab at an investment of about Rs. 1500 crore.
This project has capacities of 188,160 spindles in ring spinning, 40 million metres per annum in denim fabric and 8 million pieces of denim garments per annum. This strategic move of diversifying into denim segment will further increase the group’s presence in the finished product segment.