SVP Global Textiles, one of the largest compact cotton yarn manufacturer and leading multinational textiles company, has reported a net loss of ₹20 crore against net profit of ₹40 crore logged in the same period last year, due to sharp rise in raw cotton price.
The company’s revenue dipped 28 per cent to ₹294 crore (₹406 crore). Ebitda dropped to ₹39 crore (₹93 crore).
Maj Gen (Retd) OP Gulia, CEO, SVP Global Textiles said the raw material (cotton) prices continued to remain at higher levels in September quarter and put the textile industry under stress. However, he said the company has mnaged to reduce losses by improving on operational and financial efficiencies along with some softening in cotton prices.
The next quarter is looking very promising due to improved demand of apparel and cotton prices declining from a peak of ₹1,15,000 per candy to approximately ₹70,000 per candy now.
The company is in the process of analysing various restructuring options available including the sale of assets of subsidiaries to reduce debt, he said.
The company has received approval to set up a technical textile facility at Jhalawar under the Ministry of Textile’s PLI scheme.