Lagnam Spintex posts stellar FY22 results; profit zooms six-fold!

The board of directors of the company approved a final dividend of 5 per cent i.e. Rs 0.50 per share

One of the leading manufacturers of high-quality cotton yarns, Lagnam Spintex has recently announced its FY22 results in its board meeting held on April 16, 2022. The company was able to achieve total revenue of Rs 348.95 crore during FY22 as against Rs 205.52 crore recorded during FY21, an increase of 70 per cent. Profit after tax for FY22 skyrocketed by a whopping approximately 6.4 times to Rs 28.80 crore as against Rs 4.47 crore during the same period of last year.   

The company’s export turnover jumped from Rs 104.17 crore to Rs 201.24 crore on a YoY basis. The export turnover comprises approximately 58 per cent of the total turnover. The company has expanded its export base and currently, exports to the quality-conscious market of European countries such as Portugal, Germany, Belgium, the Netherlands, Poland & others, Bangladesh, Turkey, Argentina, Peru, etc. The increase in export has improved the operating margins during FY22. The board of directors of the company approved a final dividend of 5 per cent i.e. Rs 0.50 per share.    

Financial highlights for the quarter ended March 31, 2022, are as follows:  

• Total revenue at Rs 101.66 crore, rising by 39 per cent YoY  
• EBITDA at Rs 15.11 crore, rising by 6 per cent YoY  
• Profit after tax at Rs 7.1 crore, rising by 15 per cent YoY  
• EPS at Rs 4.02, rising by 15 per cent YoY  

Commenting on the announcement of FY22 results, Anand Mangal, Managing Director, Lagnam Spintex, said, “Despite the outbreak of the second wave of COVID-19, all-time high raw material prices & the international disturbances, the company was able to maintain its production at full capacity and have achieved the increased turnover & profits. FY 2021-22 was very important for our company as it gave the impetus required for our next phase of expansion wherein, we would be installing an additional capacity of 41,472 spindles of 100 per cent cotton compact yarn, to enrich the product mix of the company and to improve the value addition further. A solar power plant of about 1.7 MW was commissioned at the end of December 2021, which will save the energy cost of the company."  

Since its listing in October 2021, the shares of Lagnam Spintex have furnished returns of 84 per cent. The scrip has zoomed approximately 50 per cent over the last six months.  

Investors should keep a close eye on this counter in the upcoming quarters.