Compact cotton yarn manufacturer SVP Global Ventures on Monday reported a nearly four-fold jump in consolidated net profit to Rs 40.85 crore for the second quarter ended September 30.
The company, which had posted a consolidated net profit of Rs 10.75 crore in the same period last fiscal, said its board has approved an investment of Rs 100 crore to set up a green-field facility for technical textiles at Jhalawar, Rajasthan, with a capacity of 4,500 MT per annum. The consolidated net sales during the period under review stood at Rs 401.46 crore as against Rs 363.99 crore in the year-ago quarter, SVP Global Ventures Ltd said in a regulatory filing.
Commenting on the performance, SVP Global Ventures Ltd CEO Maj Gen (retd) OP Gulia said there was growth across all segments on the back of improving volumes, strong order book and innovative products. Expansion at the company’s Oman manufacturing unit is completed and has started to contribute to the financial performance of the group, he added.
“Our strategic growth initiatives, enhanced capacity and operational efficiencies, product and geographical expansion with a focus on high margin products i.e, compact cotton are likely to drive profitability, contribute to the growth of the company and enhance value for our stakeholders,” Gulia said. The company said it expects to start commercial production at the new unit at Jhalawar in 12-15 months. The funding for the same will be done through internal accruals.
SVP Global — which is accredited as an approved supplier for leading brands, including IKEA and Zara — said its order book currently stands at Rs 5,000 crore, equivalent to the revenue for the next 2-3 years.
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