In Q2 FY23, SVP Global Textiles’ EBITDA margin was 13.8 per cent, up by 566 basis points, QoQ. The company has also improved on operational margins and reduced the loss from ₹37.15 crore in Q1 FY23 to ₹20.35 crore in Q2 FY23 in spite of continued rising prices of raw cotton.

For the six months ended September 2022, the company posted total income from operations of ₹574.58 crore and EBITDA of ₹60.97 crore.

SVP Global Textiles is in the process of restructuring the business and disposal of non-core assets. The company has a vision to be a fully integrated textile company from fibre-to-fashion with forward integration into fabric, technical textiles, and garments. SVP Global Textiles has got the approval to set up a technical textile facility at Jhalawar under the ministry of textile production-linked incentive (PLI) scheme, the company said in a press release.

“The raw material (cotton) prices continued to remain at higher levels in Q2 FY23, which kept the textile industry under stress. However, we have been able to reduce our losses by improving on operational and financial efficiencies along with some softening in cotton prices. The next quarter is looking very promising due to improved demand of apparel and cotton prices declining from a peak of ₹115,000 per candy to approximately ₹70,000 per candy now. The company is in process of analysing various restructuring options available with the company including sale of assets of subsidiaries which shall be used for reducing debt,” said Maj Gen OP Gulia, SM, VSM (retired), CEO, SVP Global Textiles Ltd.

Fibre2Fashion News Desk (DP)