Q3 2025 Sutlej Textiles and Industries Ltd Earnings Call Transcript
Key Points
- Sutlej Textiles and Industries Ltd (BOM:532782) reported a significant improvement in EBITDA, reaching INR48 crores from a loss of INR26 crores in the previous year.
- The company's gross profit increased by 15% to INR865 crores, indicating improved profitability.
- Spindle capacity utilization improved to 97% from 91%, reflecting better operational efficiency.
- The company maintained a healthy debt-equity ratio of 0.85, showcasing strong financial management.
- Positive steps by the Indian government, such as the imposition of custom duties on imported knitted fabrics, are expected to benefit domestic yarn manufacturing.
- The EBITDA margin remains low due to global demand-supply imbalances in the textile industry.
- Geopolitical uncertainties and economic conditions in major economies are impacting demand negatively.
- The home textile segment is facing challenges, particularly in exports to the Middle East and domestic sales.
- Employee costs remain high at 15% of turnover, compared to industry averages of around 10%.
- The company faces pressure from increased PET bottle prices, affecting the recycled fiber business.
Ladies and gentlemen, good day and welcome to the Sutlej Textiles and Industries Limited Q3 and nine-month FY25 earnings conference call. (Operator Instructions)
I now hand the conference over to Mr. Rajib, whole time director and Chief Financial Officer, thank you and over to you, sir.
Thank you, good afternoon, everyone and welcome to the and earnings conference call of Sutlej Textile and Industries Limited for the third quarter and nine months ended December 31, 2024. I trust that you are all doing well with me on the call today is Mr. S.K. Khandelia, adviser to Chairman of Sutlej textiles and Industries Limited, and Steller IR advisors, our investor relationship team.
We have already uploaded the investor presentation, and I hope everyone has had an opportunity to go through the same. Let me start the call by giving you the financial highlights of the quarter after which, Khandelia ji will update you on the business highlights as well as
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