Filatex India - All-Time High Spreads Aid Strong Q4 Margin Performance: ICICI Direct
Bobbins of grey silk thread sit stacked at a factory. (Photographer Luke Duggleby/Bloomberg)

Filatex India - All-Time High Spreads Aid Strong Q4 Margin Performance: ICICI Direct

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

The manmade yarn market has been characterised by strong demand and supply constraint within the industry, which has been beneficial for Filatex India Ltd.

After a strong performance in Q3, the company reported yet another robust quarter, driven by sustained enhancement in yarn spreads.

Revenue for the quarter grew 18% QoQ (28% YoY) to Rs 852.8 crore, mainly driven by blended realisations increasing 32% QoQ (36.4% YoY).

Gross spreads (including inventory gain) increased substantially by 49% QoQ (111% YoY) to Rs 37.3/kg, with gross margins expanding approximately 400 basis points QoQ (1200 bps YoY) to 30.0%.

Click on the attachment to read the full report:

ICICI Direct Filatex Company Update.pdf

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