Sutlej Textiles and Industries today reported 47.70 per cent decline in profit after tax (PAT) at Rs 23.58 crore in the first quarter of the current financial year.
The company's PAT stood at Rs 45.09 crore during the corresponding quarter of the previous financial year.
Total income of the manufacturer and exporter of value -added dyed yarns grew by 17.32 per cent during Q1 of 2017-18 at Rs 658.73 crore from Rs 561.48 crore in the same quarter of last fiscal.
"The domestic environment pressures continued to adversely impact the textiles sector during the first quarter of FY18. Following the disruption due to demonetisation, the imminent introduction of Goods and Services Tax (GST) further dampened demand during this quarter.
"The implementation of GST has disrupted the unorganised sector, which has been demanding its removal on fabrics and resolution of the inverted duty structure," Sutlej Textiles Chairman C S Nopany said in a release here.
As anticipated, margins during the second quarter of this financial year continue to be under pressure due to the lack of domestic demand coupled with a strong rupee affecting exports, he added.
"We have been able to achieve top line growth as new capacities have started commercial production, both in spinning and home textiles. We expect that the operations will stabilise during the second quarter and the value-added products will be the profit driver in the future," he said.
Sutlej Textiles exports products to more than 60 countries and has presence across major developed and emerging economies, including Australia, Argentina, Bangladesh, Cuba, Bahrain, Belgium, Brazil, Canada, China, Chile, Egypt, France, Germany, Hong Kong, Italy, Morocco, New Zealand, Peru, Poland, Philippines, Portugal and Russia, among others.
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