The shares of this dyed polyester viscose fabric gained up to 5 percent after the company’s net profit and revenue increased by 1600 percent and 44 percent YoY, respectively in the third quarter.
With a market capitalization of Rs 1,097.59 crore, the shares of Mafatlal Industries Ltd were trading at Rs 153.95 per share, increasing around 1.62 percent as compared to the previous closing of Rs 151.50 apiece.
Looking into the company’s Performance, Mafatlal Industries Ltd’s revenue increased by 36 percent on a quarter-on-quarter basis from Rs.309 crores in Q2FY24 to Rs. 420 crores in Q3 FY24. Further, revenue increased by 44 percent year on year from Rs. 292 crore in Q3FY23 to Rs. 420 crore in Q3FY24.
Mafatlal Industries Ltd’s net profit decreased by 19 percent on a quarter-on-quarter basis from Rs. 21 crore in Q2FY24 to Rs. 17 crore in Q3FY24. Further, net profit increased by 1,600 percent yearly from Rs 1 crore in Q3FY23 to Rs. 17 crore in Q3FY24.
The business reduced debt and optimized interest costs by selling non-core assets and leveraging investment portfolios to increase working capital at competitive ROIs.
The company is expanding into traditional textiles while also diversifying its product portfolio by entering new sectors such as health and hygiene and digital infrastructure. These strategic initiatives aim to optimize resource utilization, streamline systems, and align with a larger growth vision.
The firm recorded Rs 11.6 crore in other income, with a sizable amount being non-operational. This comprises the sale of a non-core asset as well as the sale of TDR. Gross debt as of December 31, 2023, was Rs 58 Cr, compared to Rs 76 Cr as of September 30, 2023.
Mafatlal Industries Limited specializes in textile manufacture, commerce, technology, and associated items. The company offers a variety of products, including clothes, school uniforms, and traditional textiles. The company primarily focuses on textiles and associated products, as well as digital infrastructure.
Written by:- Abhishek Singh
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