Filatex India reported strong earnings as the textile production company has achieved its highest-ever quarterly EBIDTA and EBITDA margin. Madhu Sudhan Bhageria, CMD of the firm said that Q3 was the best quarter since the inception of the company and they are expecting such quarters going forward as well.
“We have had a very good last quarter. It is one of the best we have had since the inception of the company. But I do feel that we will have a better quarter in Q4 and going forward we will be able to sustain these quarters. The reason for that is the demand for fabrics has increased considerably and the focus of the government has also shifted to manmade fibers in textile which was neglected for a long time,” he told CNBC-TV18.
Bhageria expects revenues to be around Rs 2,100-2,200 crore for FY21 and expects margins to stay intact at around 17 percent.
“We expect to close at around Rs 2,150-2,200 crore. But in our business bottomline is more important than the topline. Topline can be tweaked by making products that don’t have more margins like chips we make. Right now we are not making too many chips and that is why the topline will not increase substantially. But the margins will remain intact and we will have a good fourth quarter. I think we will have a similar percentage in the fourth quarter. It will maintain at 17 percent, but as a total, it should be better than Q3,” he said.
He said that they will close the year with a debt of around Rs 600 crore and expect it to reduce by around Rs 100-150 crore in FY22.Watch the video for more