SVP Global Ventures announces results for T2FY22 with EBIDTA of Rs. 93.06 crore and PAT Rs. 40.85 crore
SVP Global Ventures Ltd, India’s leading manufacturer of compact cotton yarns and one of the fastest growing multinational textile companies, reported net profit of Rs. 40.85 crore for the T2FY22 ended September 2021, compared to a net profit of Rs. 10.75 crore at T2FY21, growth of 280%. EBITDA for T2FY22 was reported at Rs. 93.06 crore (EBITDA margin 23.18%) compared to EBITDA of Rs. 57.63 crore (EBITDA margin 15.83%) at T2FY21 a growth of 61,%. Operating income for T2FY22 was reported at Rs. 405.74 crore, 9% growth compared to operating income for the same period last year of Rs. 372.28 crore. The BPA for Q2FY22 was reported at Rs. 3.23 per share.
During the quarter, subsidiary SVP Global – SV Pittie Sohar Textiles (FZC) began commercial operations on August 15, 2021 at its mega textile factory in the Sohar Free Zone in Oman. The group has invested $ 150 million (roughly Rs 1,100 crore) in setting up 1.5 lakh spindles and 3,500 rotors.
Commenting on the results and performance, Major General OP Gulia, SM, VSM (retired), CEO, SVP Global Ventures Ltd said: âThe performance of the company during the quarter was quite remarkable in all segments thanks to improving volumes, a solid order book and innovative products. The expansion in Oman has been completed and has started to contribute to the financial performance of the Group. Our strategic growth initiatives, improved capabilities and operational efficiency, product and geographic expansion with a focus on high margin products i.e. compact cotton drive profitability, contribute to the business growth and increase value for our stakeholders. “
For the six months ended September 2022, the company posted a net profit of Rs. 80.04 crore (PAT Margin 10.18%) with growth of 271%, compared to a net loss of (Rs. 46.69) crore as of S1FY21. Operating income for S1FY22 was reported at Rs. 817.60 crore, 73% growth compared to operating income for the same period last year of Rs. 472.08 crore. EBITDA for S1FY22 was reported at Rs. 184.45 crore (23.46% EBITDA margin). EPS for H1FY22 was reported at Rs. 6.33 per share.
With the vision of becoming a fully integrated textile manufacturer, the company is also branching out into technical textiles. The company is investing around Rs. 100 crore in setting up a new 4,375 MT per year facility in Jhalawar, Rajasthan and plans to manufacture protective uniforms, functional clothing, medical textiles, mobile technologies, domestic technologies, anti-odor and antibacterial knitted fabrics for sports, medical and cosmetic use. The company plans to start commercial production in 12 to 15 months.
Founded in 1898 by Shri Vallabh Pittie, SVP Group is mainly engaged in the manufacture of polyester, polyester and cotton blends and 100% cotton yarns in 3 state of the art manufacturing plants in Jhalawar (Rajasthan), Ramnad (Coimbatore) and Sohar (Oman). The company’s vision is to become a leading and fully integrated textile company in the manufacture of yarns, fabrics and garments.
The company’s backlog currently stands at Rs. 5,000 crore, which equates to the next 2-3 years of revenue. SVP Global is among the top 2% Indian manufacturers with less than 5 years technology and production of 153-154 grams per spindle per shift which is the highest in the industry. The company’s manufacturing facilities are equipped with state-of-the-art automated machines equipped with artificial intelligence and IOT capabilities, from Blow Room to Windling. SVP Global is accredited as an authorized supplier for major brands such as IKEA and Zara. For fiscal year 21, the company reported total income of Rs. 1422 crore, EBITDA at Rs. 234 crore and PAT at Rs. 25 crore.
Shares of SVP GLOBAL VENTURES LTD. Last traded on BSE at Rs. 117.55 from the previous close of Rs. 117.50. The total number of shares traded during the day was 34,985 in over 1,024 transactions.
The action hit an intraday high of Rs. 121.65 and an intraday low of 116.00. The net turnover during the day was Rs. 4,175,806.00.