Vardhman Textiles production dips significantly in June quarter

Vardhman Textiles Limited, which is engaged in manufacturing of cotton yarn, synthetic yarn, woven fabric, sewing thread, acrylic fiber, tow, and garments, has come out with its production and sales numbers for the quarter ending June 30, 2020.

In terms of yarn, the company’s production dipped by 39.3 per cent in Q1FY21 to 31,066 metric tonnes from 51,139 metric tonnes from Q1FY20. While the sales plunged 41.9 per cent to 29,789 metric tonnes from 51,312 metric tonnes on YoY basis.

Its production of Grey fabric dipped by 64.3 per cent from 513 lakh metres in Q1FY20 to 183 lakh metres in Q1FY21. Its sales plunged 69.9 per cent to 153 lakh metres in Q1FY21 from 509 lakh metres in Q1FY20. Its production of Processed Fabric dipped 61.8 per cent YoY to 125 lakh metres in Q1FY21 from 327 lakh metres in Q1FY20. The sales plunged 64.6 per cent YoY from 328 lakh metres in Q1FY20 to 116 lakh metres in Q1FY21.

This steep dip in production and sales was caused by the nationwide lockdown imposed in India, which led to a temporary shutdown of plants and a significant dip in demand.

On the financial front, its consolidated revenue for the quarter Q1FY21 came in at Rs 817.47 crore as against Rs 1,650.36 crore in the corresponding quarter last year, registering 50.5 per cent YoY decline. It incurred operating loss for the quarter of Rs 1.70 crore as against operating profit of Rs 250.58 crore in the corresponding quarter last year. Further, it incurred a net loss of Rs 64.14 crore as against the net profit of Rs 120.99 crore in the corresponding quarter last year.

On Wednesday, the stock of Vardhman Textiles opened marginally by 0.6 per cent at Rs 638.95 from its previous close of Rs 634.95 on BSE.