Filatex India Limited (NSE: FILATEX, BSE: 526227), a leading manufacturer of synthetic filament yarns, has reported strong financial performance for the third quarter (Q3) and nine months ended December 31, 2024. The company showcased a significant improvement in profitability, driven by cost optimizations and increased demand.
Financial Highlights (Standalone Results)
Quarterly Performance (Q3 FY 2024-25 vs Q2 FY 2024-25)
Revenue from Operations: ₹1,06,869 lakh (₹1,069 crore), up from ₹1,04,910 lakh in Q2.
EBITDA: ₹7,540 lakh (₹75.4 crore), showing a sharp increase from ₹4,570 lakh in Q2.
Net Profit: ₹4,743 lakh (₹47.4 crore), a massive jump from ₹1,347 lakh in Q2.
Production Quantity:1,02,207 MT, compared to 94,993 MT in Q2.
Sales Quantity:1,01,432 MT, up from 96,255 MT in Q2.
Year-to-Date Performance (9M FY 2024-25 vs 9M FY 2023-24)
Revenue from Operations: ₹3,17,213 lakh (₹3,172 crore), down 2.7% YoY from ₹3,26,006 lakh.
EBITDA: ₹18,200 lakh (₹182.0 crore), up from ₹17,440 lakh last year.
Net Profit: ₹9,319 lakh (₹93.2 crore), rising 22.9% YoY from ₹7,582 lakh.
Production Quantity:2,94,779 MT, compared to 3,08,634 MT in the previous year.
Sales Quantity:2,93,649 MT, slightly lower than 3,04,633 MT YoY.
Profitability and Margins
Earnings per Share (EPS):
Q3 FY 2024-25:₹1.07 per share, up from ₹0.30 in Q2.
9M FY 2024-25:₹2.10 per share, compared to ₹1.71 in 9M FY 2023-24.
Total Comprehensive Income for Q3: ₹4,746 lakh, reflecting a substantial rise in overall earnings.
Operational Performance and Cost Analysis
Key Expense Breakdowns (Q3 FY 2024-25 vs Q3 FY 2023-24)
Raw Material Costs: ₹86,340 lakh, down from ₹90,844 lakh in Q3 last year.
Employee Benefits Expense: ₹2,935 lakh, slightly up from ₹2,683 lakh.
Finance Costs: ₹83 lakh, significantly lower than ₹1,148 lakh last year, indicating effective debt management.
Depreciation & Amortization: ₹1,839 lakh, consistent with the previous year.
Other Expenses: ₹9,145 lahks, lower than ₹9,576 lahks last year, benefiting from a power tariff subsidy of ₹817.26 lakh.
Total Expenses:
₹1,00,949 lakh in Q3 FY 2024-25, compared to ₹1,03,808 lakh in Q3 FY 2023-24, highlighting cost optimization efforts.
Expansion Plans and Strategic Investments
Capacity Expansion at Dahej Plant
Additional manufacturing capacity for Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), and Draw Textured Yarn (DTY) at Dahej.
Investment of ₹155 crore with an expected commissioning by June 2026.
Hybrid Power Project with Torrent Power
Investment of ₹24 crore in a 19.8 MW hybrid power project in Gujarat.
Expected to generate 100 million units annually, resulting in savings of ₹25 crore annually.
Commissioning is targeted for September 2025.
Market Outlook and Growth Strategy
Filatex India has demonstrated a strong recovery from margin pressures observed in the first half of FY 2024-25. Key factors driving future growth include:
Rising demand for synthetic filament yarns, supported by an improving global textile market.
Increased operational efficiencies and strategic cost-cutting measures.
Commitment to sustainability, with significant investments in renewable energy.
The company expects continued growth in Q4 FY 2024-25, supported by higher demand, cost reductions, and energy savings.
Conclusion
Filatex India has successfully navigated industry challenges, strengthened profitability, and set the stage for sustainable long-term growth. The company's strategic investments in capacity expansion and green energy projects reinforce its commitment to growth and sustainability.
