The Hindu Business Line : Filatex India: Betting on numbers

Filatex India, a polyester filament yarn (PFY) manufacturer and a leader in polypropylene filament yarn(PPFY), is a recent discovery and accumulation target for some investors. According to market sources, Filatex is riding the domestic PFY industry’s current multi-year turnaround, on strong demand growth. Also on account of a debt settlement with IDBI of Rs 27.5 crore, it is enjoying substantial reduction in interest burden — hence incremental earnings growth prospect this fiscal. Market talk suggested that Filatex sales and profit might see a quantum jump. Mr Madhu Sudhan Bhageria, MD of Filatex, confirmed to Business Line that the demand for PFY was stronger this fiscal and in the absence of capacity expansion in the industry, sales and margins are showing substantial improvement. Without being specific about numbers, he said the Q2 and full year EBITDA should be higher. In Q1, Filatex reported a net profit of Rs 1.26 crore. In the high-margin PPFY, for use in textiles industry (such as hosiery and laces), Filatex has a market share of 35 per cent. The company this month has allotted non-convertible cumulative redeemable preference shares of Rs 10 each and 8,41,397 equity shares of Rs 10 each to IDBI Ltd at Rs 23.77 per share in terms of a negotiated settlement of dues. It also made preferential allotment of 40 lakh shares of Rs 10 each to Somerset India Fund, Dufflaghur Investments, a FII, at Rs 25 per share. — Jayanta Mallick

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