Reliance Chemotex Industries Ltd., a leading Synthetic Yarn Manufacturer, has announced its Financial Results for the Quarter and the Half Year ended September 30th, 2019.
Q2 FY20 Operating Performance Improves Sequentially
- Total Revenue at Rs. 82.67 crores, QoQ growth of 10%
- EBITDA of Rs. 7.54 crores, QoQ growth of 18%
- EBITDA Margin of 9.13%, QoQ improvement of 62 bps
- Profit Before Tax of Rs. 2.63 crores, QoQ growth of 72%
- Net Long-Term Debt to Equity of 0.13x as on 30th September 2019
Commenting on the results, Mr. Sanjiv Shroff, Managing Director of Reliance Chemotex Industries Limited said: We are pleased to report that the company has continued its growth journey in the current year with our revenue and operating profits growing at 10% and 18% respectively on a quarter-to-quarter basis.
Our continued focus on strategic cost reduction and on further improving our versatile and value- added product mix has begun bearing fruit as is evident from the 17% (year-on-year) improvement in our operating profit. Furthermore, the company has successfully pursued businesses that require yarns of extremely high quality and yarns that are utilized in technical end-uses.
In our effort to further reduce our operating costs, the company has evaluated the feasibility of installing Solar Panels (up to a capacity of 3MW) on the rooftops of our manufacturing units in Udaipur. This endeavor will reduce the Company's carbon footprint, lead to significant cost savings and will, to a certain extent, insulate the Company from fluctuations in Industrial Power Tariff Rates.
Furthermore, we have embarked on an expansion and modernization project which will replace certain older machines while allocating others for research and product development purposes. This project will significantly reduce operating costs, improve profitability and further increase the flexibility of the company's manufacturing.
On the Balance Sheet front, the Company has repaid Rs. 4.31 crores of its long-term debt during the first six months of this financial year. The current outstanding long-term debt stands at Rs. 12.18 crores which translates to a comfortable net Long-term debt to equity of 0.13x."
Shares of RELIANCE CHEMOTEX INDUSTRIES LTD. was last trading in BSE at Rs.62.5 as compared to the previous close of Rs. 58.4. The total number of shares traded during the day was 5518 in over 70 trades.
The stock hit an intraday high of Rs. 63.65 and intraday low of 57.25. The net turnover during the day was Rs. 336262.