Big yarn capacity hike in progress
Sutlej Textiles and Industries Ltd. (STIL), a leading manufacturer of value-added synthetic, cotton and blended yarns, fabrics and home 
furnishings, recorded a net profit of Rs. 111 crores during the nine months of the year ended December 31, 2013, as against Rs. 61 crores generated during the corresponding period last year, registering a growth of 82 per cent. Its revenue expanded from Rs. 1,248 crores garnered in the nine months ended December 31, 2012, to Rs. 1,399 crores, marking an increase of 12 per cent. EBITDA is Rs. 236 crores as compared to Rs. 174 crores, showing a growth of 36 per cent.
Strong operational and financial performance of the company was due mainly to improved profitability on the back of operational and financial efficiency, better realizations and higher production of units resulting in revenue expansion, margin progression on the back of improved cost efficiencies and profitability enhancement on account of lower interest outgo and improved cost management.
STIL’s spinning capacity is being expanded by 30,672 spindles, resulting in higher production of value-added yarns at a project cost of Rs. 175 crores. Expansion is on schedule, and commercial production is likely to commence in the third quarter of 2015. Further, modernization-cum-upgradation of the existing projects will result in substantial cost reduction.
In line with the company philosophy of rewarding its shareholders, it allotted bonus shares in the ratio 1:2 in June 2013.
Commenting on the results, Mr. C.S. Nopany, STIL Chairman, said: “Our strategy to focus on manufacturing niche products in the yarn category, namely, specialty & value added yarns, is reflected in the sustained improvement in operational and financial performance even in a protracted slowdown prevailing in the macro environment. Our constant endeavour towards maintaining a high degree of cost efficiencies has also enabled us to soften the impact of cyclicality associated with the business. Favorable domestic and international factors in general have aided the sector by keeping the raw material prices steady during the period. In addition, our innovative R&D enables us to broaden our sourcing capabilities, thus strengthening our ability to mitigate volatile raw material prices over the years. While the economy at present continues to reel under pressure, we are optimistic that the company’s current implementation of capacity addition and modernization will further consolidate its position within the industry and enable us to deliver healthy financial performance going forward.”
Incorporated in 2005, Sutlej, an ISO 9001:2008-certified company, excels in all stages of textile production, with its versatile facilities 
being vertically integrated, from spinning and weaving to dyeing and finishing to making home textile furnishing.
The company has also been a recipient of numerous prestigious awards, the latest ones being the Niryat Shree – Gold Trophy Award in October 2012 for its export performance in 2009-10, (up 77 per cent over the preceding financial year), Gold Trophy from SRTEPC for best performance in export of fabrics to focused Latin American countries in 2011-12 and the Silver Trophy, also from SRTEPC, for the second best export performance in the spun yarn category in 2011-12.
STIL has its global footprint with presence across Australia, Argentina, Bangladesh, Canada, China, Egypt, England, France, Germany, Greece, Hong Kong, Indonesia, Pakistan, Panama, Philippines, Sri Lanka, Turkey, the US, the UAE and Vietnam.