During Wednesday’s trading session, the shares of one of India’s leading manufacturers of Polyester Filament Yarn surged nearly 9 percent to Rs. 50.78 on BSE, after the company announced expansion plans and reported a rise in net profit by 251 percent QoQ and 35 percent YoY in FY25.
With a market cap of Rs. 2,217 crores, the shares of Filatex India Limited closed in the green at Rs. 49.95, up by around 7 percent, as compared to its previous closing price of Rs. 46.65.
What’s the news
The fluctuations in the share prices were observed after Filatex Ind Limited announced the financial results for Q3 FY25, through the rece filings with the stock exchange
For Q3 FY25, Filatex India reported revenue from operations of Rs. 1,068.7 crores, registering a marginal increase of around 2 percent QoQ from Rs. 1,049 crores in Q2 FY25, as well as a rise of about 1.3 percent YoY from Rs. 1,083 crores in Q3 FY24.
The company’s net profit for Q3 FY25 grew to Rs. 47.4 crore representing a significant rise of around 251 percent QoQ from Rs. 13 crores in Q2 FY25, and a year-on-year increase of nearly 35.4 percent from Rs. 35 crores in Q3 FY24.
In Q3 FY25, the company reported an increase in EBITDA to Rs. 75.4 crores, reflecting a strong 65 percent QoQ growth compared to Rs. 45 crores in Q2 FY25.
Expansion Plans
The company’s Board has approved an expansion project for additional manufacturing facilities at its existing unit in Dahej. This includes 19,800 MTPA of Partially Oriented Yarn (POY), 14,400 MTPA of Fully Drawn Yarn (FDY), and 14,400 MTPA of Draw Textured Yarn (DTY).
The estimated cost of this expansion is about Rs. 155 crores, with an expected commissioning date of June 2026. Additionally, the Board has approved an investment of around Rs. 24 crores in a new hybrid power project in collaboration with Torrent Power Limited (TPL).
The project will be set up, owned, and operated by TPL or its wholly owned Special Purpose Vehicle (SPV) and/or its associates, located in Gujarat. The project is expected to be commissioned by September 2025.
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Stock Performance
The stock has delivered negative returns of nearly 18 percent in one year, as well as around 20 percent returns in the last six months. Similarly, the shares of Filatex India have given negative returns of about 18 percent in the last one month.
About the Company
Filatex India Limited is primarily engaged in the business of manufacturing of polyester chips, fully drawn yarns (FDY), polypropylene multifilame crimp yarns, polyester partially oriented yarns (POY), drawn textured yarns (DTY), and narrow woven fabrics.
Written by Shivani Singh
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