Despite tough economic environment and rising input costs, the Rajasthan-based Banswara Syntex saw its bottom-line growing over two-fold in the quarter ended September 2013, helped by turnaround in exports in line with the rupee depreciation and some recovery in global demand.
The company, which is engaged in manufacturing of yarn, fabric and garments, reported a net profit of Rs 7.55 crore in Q2 FY14 as against Rs 3.74 crore in Q2 FY13. The company’s total income also jumped over 16 per cent in the quarter ended September 2013 at Rs 296 crore versus Rs 254.6 crore in the year ago period.
Banswara Syntex’s exports contribute to more than half of its total revenues. The company exports its products to more than 50 countries including US, UK, Canada, Spain, Germany, Italy, France, Philippines, Turkey and GCC countries. Exports comprised 54.2 per cent of its total revenues in 2011-12 while domestic revenues accounted for 45.77 per cent of the revenues.
The company, manufacturing fabrics with Lycra purchased from international brand, Dupont, also leveraged the rupee depreciation in first half of current fiscal year to boost its revenues. Also the revival in demand for Indian readymade garments in the foreign markets supported Banswara Syntex’s bottom-line.
According to a latest Reserve Bank of India (RBI) data, readymade garments exports grew by 13.3 per cent in Apr-Sep 2013 period as compared to a decline of 8.2 per cent in the year ago period. RBI data also showed that India exported textile and garments worth Rs 92,358 crore in H1 FY14, with readymade garments accounting for almost half of it.
