Filatex India net trebles on tax write back

Our Bureau Mumbai | Updated on November 12, 2019

Madhu Sudhan Bhageria, Chairman and Managing Director

Filatex India, manufacturer of polyester and polypropylene multifilament yarn and polyester chips, has reported that its net profit in September quarter ended 2019 has trebled to Rs 60 crore from Rs 20 crore logged in same period of previous fiscal on deferred tax write back of Rs 35 crore.

Revenue from operations during the quarter was down at Rs 680 crore against Rs 718 crore logged in the corresponding period last year.

Madhusudhan Bhageria, Chairman & Managing Director, Filatex India said despite the turbulent economic conditions and slowdown across industries, the company maintained high capacity utilisation and increased production during the challenging period.

The company is planning to increase the polymerisation capacity of 150 tonnes per day (tpd) through debottlenecking and 170 tpd of Partially Oriented Yarn at Dahej unit in September. The implementation of additional DTY (drawn texturised yarn) capacity will commence production by April 2020.

The company has set up captive power plant at Dahej to reduce energy cost, with construction work proposed to start in Q3FY20 after necessary clearances, he said. Filatex is exploring new value-added products like home textiles, which have shown steady growth over the last decade.

Considering the MAT credit available, there is no impact on the provision for Income tax for the quarter and six months ended September 30, 2019. The company expects to utilise the deferred tax balances over subsequent periods which have accordingly been re-measured using the tax rate expected to be prevalent in the period.

Consequently, the company has reversed deferred tax liabilities amounting to Rs 35 crore in the September quarter.

Published on November 12, 2019

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