Shahlon Silk Industries, a leading textile player, has realised ₹18.50 crore from dilution of non-core asset, a land measuring 22,619 square meters, under compulsory acquisition by the government for Vadodara Mumbai Express Highway.
The proceeds would be used to reduce debt to the tune of ₹12.50 crore, and the remaining ₹6 crore for working capital and strengthening the balance sheet.
Dhirajlal Raichand Shah, Chairman, Shahlon Silk Industries, said there has been a strong recovery in sales because of the overall improvement in retail and e-commerce sales while markets continue to recover from the slowdown caused by the pandemic.
Moreover, the company’s exports are back to 75 per cent level of its pre-Covid levels and is expected to normalise soon. Furthermore, dilution of non-core asset has enhanced cash flows of the company to the tune of ₹18.50 crore.
The company reported a net profit of ₹39 lakh in September against loss of ₹6 crore in June quarter. Revenue from operations was at ₹crore against ₹10 crore in Q1 FY21.
EBITDA increased to ₹6 crore, against loss of ₹30 lakh in Q1 FY21.
The recent Production Linked Incentive scheme announced by the government is a major step, and being one of the leading man-made fibre and technical textile players, the company stands to gain from incentives for manufacture and export of specific textile products, he said.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.