Filatex India: Higher Spreads To Keep Margin Trajectory Positive, Says ICICI Direct
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ICICI Direct Report
Driven by favourable spreads and improved product mix, Filatex India Ltd. reported its highest ever quarterly Ebitda in Q3 FY21.
Steady increase in demand for downstream textile sector led the company to run at 90% capacity utilisation in yarn segment.
Revenue for the quarter fell 2% YoY to Rs 721.6 crore, with volumes for yarn increasing 3% to 86141 tonnes.
Gross spreads increased substantially by 57% YoY to Rs 25.0 per kilogram, with gross margins expanding approximately 1000 basis points YoY to 30.0%.
Commencement of additional drawn textured yarn capacity also contributed to higher margins.
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