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The Textile Magazine
JUNE 2012
SEL
records 35 per cent
increase in turnover
corporate news
SEL Manufacturing Company
Ltd., a Ludhiana-based integrated
textile conglomerate having pres-
ence in yarns, knitted fabrics,
terry towel, readymade garments
and captive power generation, has
witnessed a 35.01 per cent jump in
its turnover to Rs. 2,330.83 crores
during the financial year ended
March 31, 2012, as compared to
Rs. 1,726.42 crores in the last fis-
cal. SEL’s consolidated EBIDTA
has risen to Rs. 392.75 crores (Rs.
315.17 crores), registering an in-
crease of 24.62 per cent. Net profit
was, however, lower at Rs. 82.81
crores (Rs. 112.48 crores).
While the increase in EBIDTA is
attributable to operational efficien-
cies, the full contribution of the
ongoing expansion thereof is yet to
be captured in the financial results.
The decrease in net profit is attrib-
utable to higher depreciation and
financial cost, resulting from high
capex and expansion drives.
Yarn prices had an uncertain
and declining trend. Further, the
Government policy with regard to
cotton and yarn exports
also added to the woes of
the textile sector.
The early part of
the current fiscal was
marked by a high vola-
tility in cotton prices.
Spiralling raw material
prices was followed by
a steep fall in cotton
prices by the end of the
last season. Indian textile
companies, which were carrying
stocks of high-cost cotton had to
face a very tough situation as yarn
prices had fallen steeply. This un-
precedented trend in cotton prices,
high inventory carrying costs and
devaluation of stocks were quite
challenging for the textile sector.
Erosion in profitability in the first
half of 2011-12 was just unavoid-
able.
On the expansion front, the year
witnessed dynamic growth of the
SEL Group. It commissioned In-
dia’s largest spinning unit at a sin-
gle location at Mehatwara village in
Mr. Neeraj Saluja, Managing Director, SEL Group