Banswara Syntex Reports Subdued Performance In 9MFY24 Amidst Market Slowdown
In a recent announcement, Banswara Syntex Ltd, a leading textile company, disclosed its financial results for the first nine months of fiscal year FY24. Commenting on the results, Ravindra Kumar Toshniwal, Managing Director, remarked, “The second half of fiscal year FY24 has begun on a softer note, with challenges persisting, particularly on the demand side in both domestic and export markets. Our topline experienced de-growth in 9MFY24 on a YoY basis, attributed to pricing pressure and an overall economic slowdown. Notably, exports have declined by more than 50% in key markets including Europe, Turkey, the US and the UK. However, we anticipate an uptick in demand moving forward in FY25, driven by the ongoing ‘China +1’ strategy and new order inflows in western markets. Despite the current challenges, we remain optimistic about the future prospects and are committed to navigating the evolving market dynamics successfully.”
The company’s total income was Rs 930.1 cr., EBITDA was at Rs 89.8 cr., PBDT at Rs 68.1 cr. and PAT at Rs 26.9 cr. The yarn sales declined by 11% YoY to Rs. 382 cr. The challenges included pricing pressures and sluggish demand, despite an 8% growth in volume. Production declined in Q3FY24 due to reduced demand in both domestic and export markets.
Fabric sales dropped by 22% YoY to Rs. 324 cr. as underperformance of over 50% in the US and UK markets adversely affected the division’s performance. Garment sales saw a 25% YoY decline to Rs 204 cr. as subdued demand from both domestic and global retailers, along with exceptionally low demand for suits/blazers, impacted sales.
The company’s export sales contribution decreased from 47% to 40% in 9MFY24 YoY, primarily due to the slowdown in Europe, Turkey, US and UK markets. The domestic market also experienced lower demand and pricing pressure, leading to a 6% QoQ decrease and an 8% decrease over the previous year in Q3.
