SVP Global Textiles, one of the largest compact cotton yarn manufacturers and one of the leading multinational textile companies, has seen its net profit of Rs. reported a net loss of Rs.200 crore. .
The company’s revenue fell by 28% to Rs 2.94 crore (Rs 460 crore). Ebitda slumped to his 3.9 billion rupees (9.3 billion rupees).
Maj Gen (Retd) OP Gulia, CEO, SVP Global Textiles said raw material (cotton) prices remained high in the September quarter, adding stress to the textile industry. However, he said, with some softening in cotton prices, the company has managed to reduce its losses by improving operational and financial efficiency.
The next quarter looks very promising as apparel demand improves and cotton prices drop from a peak of Rs 1,15,000 per candy to now around Rs 70,000.
The company is in the process of analyzing various restructuring options available, including selling assets of subsidiaries to reduce debt, he said.
The company has received approval to set up a technical textile facility in Jalawar under the Ministry of Textiles’ PLI scheme.