Sintex Ind Q1 net down 2% on higher depreciation cost

Moneycontrol Bureau

Sintex Industries has reported an around 2 percent year-on-year decline in profit during June quarter on high interest and depreciation cost. Total income of the plastic and textile manufacturer grew to Rs 1128 crore from Rs 1081 crore YoY.
The company said its forex loss narrowed down to Rs 3.7 crore from Rs 29 crore YoY.
The firm has recorded operating margins at 14.3 percent versus 16.4 percent YoY.
Shares of the company declined around 4 percent to Rs 40.30 post earnings announcement. Read This:Sintex Industries tanks nearly 8% on F&O exclusion
Commenting on the company’s performance, Amit Patel, Group Managing Director, Sintex Industries said that it was a tough quarter in terms of business environment and sluggish domestic economy and global turbulence were major headwinds. Yet, we managed to maintain growth in topline. “We will make a strong comeback in the ensuing quarters with higher contribution from the value added product portfolio and overall improvement in capacity utilization," he added.
However, despite a tough market environment dampening good growth, the company said it is actively studying to implement 3,00,000 spindles project in Gujarat under the new textile policy and the same is likely to be ramped up to one million spindles in five years.