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.