Q2 2025 Filatex India Ltd Earnings Call Transcript
Key Points
- Filatex India Ltd (BOM:526227) reported a stable performance in Q2 FY25 despite strong headwinds, with a gradual improvement in demand and margins since October.
- The company is focusing on sustainability and has developed a patented process for textile-to-textile recycling, with plans to set up a 26,250 tonnes per annum capacity plant.
- Filatex India Ltd (BOM:526227) is sourcing around 30% of its energy from wind and solar power, reducing its carbon footprint.
- The company anticipates significant improvement in cash flows and aims to be close to debt-free by FY26, supported by planned CapEx and improved market conditions.
- The management expects EBITDA margins to improve to double digits in the coming quarters, driven by increased demand and reduced competition from imports.
- Filatex India Ltd (BOM:526227) experienced a decline in revenue and net profit in Q2 FY25 compared to Q2 FY24, with margins under severe pressure.
- The company faces challenges from fluctuating crude prices and geopolitical tensions, impacting raw material costs and buyer sentiment.
- Cash flow from operations has deteriorated significantly, attributed to reduced margins and loan repayments.
- The recycling plant project has faced delays, with commissioning now expected by the first quarter of 2026, later than initially planned.
- Interest costs have increased due to mark-to-market losses on long-term borrowings, affecting financial performance.
Ladies and gentlemen, good day, and welcome to Filatex India Limited Q2 and H1 FY25 conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Aditya Vora. Thank you, and over to you, sir.
Good afternoon, everyone. On behalf of Share India Securities, I would like to welcome all the participants for the second quarter and 1H FY25 Earnings Conference Call of Filatex Limited. We are pleased to have with us the management team represented by Mr. Madhu Sudhan Bhageria, Chairman and MD; Mr. Madhav Bhageria, Joint MD; and Mr. Ashok Chauhan, Chief Visionary Officer. We will have opening remarks from Mr. Madhu Sudhan Bhageria to give an overview on the company's performance. This will be followed by the question and answer.
Thank you, and over to you, Madhu-ji.
Thank you so much. Good afternoon. A warm welcome to
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