The project will be funded through internal accruals and debt. The existing capacity of the company in yarn production is around 4.21 lakh spindles. The company operates at around 94-95 per cent capacity utilisation, it said in a BSE filing.

Sutlej Textiles has also reported its financial results for the quarter and year ended March 31, 2022. Its total income for FY22 is up 63 per cent at ₹3,112 crore comparted to FY21, while the same for Q4 stands at ₹901 crore, up 31 per cent from Q4 FY21. The EBITDA jumped 206 per cent to reach ₹414 crore for FY22 comparted to FY21 and 62 per cent to reach ₹133 crore in Q4 FY22 compared to the same quarter in FY21.

Commenting on the results, C S Nopany, executive chairman, Sutlej Textiles and Industries Limited, said: “During the fiscal, the Indian yarn players experienced a strong demand amid healthy exports and pent-up demand in domestic market with receding impact of COVID-19. The government of India's growth led Union Budget 2022-23 and policies for textile industry boosted the growth sentiments for the industry and the economy. With increasing geological risk, higher inflation, interest rates and raw material prices, the company remains cautiously positive for future demand for spinning sector. At Sutlej we experienced strong demand and with our diversified product portfolio, better efficiencies, we witness significant improvement in profitability during the quarter. We remain committed to future growth plans with focus on enhancing our product portfolio, geographical reach and improving efficiencies to deliver better financial results.”

Fibre2Fashion News Desk (KD)