Shahlon Silk Industries, a leading textile player, has realised Rs18.50cr from dilution of non-core asset, a land admeasuring 22,619 sq. mtrs. under compulsory acquisition by Government of India for Vadodara Mumbai Express Highway. The proceeds would be used to reduce debt to the tune of Rs12.50cr and the remaining Rs6cr would be used for working capital - strengthening the balance sheet.
The Company has declared its Q2FY21 Results, Highlights are as under:Revenue from operations was at Rs39.59cr, against Rs10.4cr in Q1FY21 Quarter. EBITDA has increased to Rs5.70cr, against Loss of Rs 0.30 Cr in Q1FY21. EBIDTA % improved on a YoY basis from 11.2% to 14.4% due to better realisations and overall improvement in the demand scenario. Net Profit was at Rs0.39cr against Loss of Rs6.1cr in Q1FY21.
Commenting on the Results and sale of non-core assets, Dhirajlal Raichand Shah, Chairman, said “We are witnessing strong recovery in sales because of overall improvement in retail and e-commerce sales.The Company is witnessing an improvement in demand as the markets continue to recover from the slowdown caused by the pandemic. Moreover, our exports are back to 75% level of its pre-covid level and expected to be normalized soon. Furthermore, Dilution of non-core asset has enhanced cash flows of the company to the tune of Rs18.50cr.
The performance in the first half of this year had been subdued owing to the lockdowns imposed by the government, but we are witnessing very good revival in demand in the second half. There is a strong and steady flow of orders and we expect it to continue through the entire second half of the year and further.”
He further added that, “The recent PLI Scheme (Production Linked Incentive) announced by the Government is a major step in the positive direction and our Company being one of the leading MMF & Technical Textile player stands to gain from the scheme as it provides incentives for manufacture and export of specific textile products.”