Mafatlal Industries Q2 Revenue Jumps 222%, H1 Revenue Up 61.9%
Mafatlal Industries Limited, a long-established player in the Indian textile industry, has announced its unaudited financial results for the quarter ended September 30, 2024. The company reported a significant year-on-year revenue growth of 222.6% for Q2FY25, reaching Rs 995.5 crore, while revenue for H1FY25 rose by 61.9% to Rs 1,447.3 crore.
Financial Performance
The company’s total income for Q2FY25 stood at Rs 1,009.3 crore, marking a 206.5% increase over the previous year. EBITDA for the quarter rose by 15.5% to Rs 32.3 crore, with operating EBITDA showing substantial growth of 110.1% to Rs 21.6 crore. Profit after tax (PAT) for the quarter was Rs 20.0 crore, a slight decrease of 4.6% from the same period last year, largely due to one-time expenses. For H1FY25, PAT grew 4.0% to Rs 50.4 crore.
The revenue growth was driven primarily by large-scale execution of consumer durable institutional orders, which contributed to 67% of the revenue in Q2FY25. Key institutional orders in H1FY25 included supply of 10,600 lakh meters of uniform fabric, 7.5 lakh consumable durable articles across Maharashtra, and 15.7 lakh pieces of Dhoti, Saree, and Lungi in Jharkhand. Mafatlal Industries also noted that its order book includes substantial projects from the governments of Maharashtra, Jharkhand, and Tripura, pending any restrictions due to upcoming state elections.
Strategic Initiatives and Subsidiary Formation
As part of its ongoing cost-reduction efforts, Mafatlal implemented a voluntary retirement scheme (VRS) for 133 workers at its manufacturing facilities, incurring a cost of Rs 5.96 crore, reported under exceptional items.
Looking ahead, the company is focusing on expanding within the digital infrastructure sector. Mafatlal recently established a subsidiary, Pieflowtech Solutions Private Limited, in which it holds a 60% stake. This new entity is positioned to enhance the company’s capabilities and offerings in government-led digital infrastructure projects, particularly in the education and rural development sectors.
CEO M. B. Raghunath expressed satisfaction with the company’s performance, citing Mafatlal’s proven track record in government tenders and institutional orders. “Our topline results reflect our strategic focus on consumer durables and digital infrastructure. With our extensive supply chain experience, we are well-positioned to continue growing, leveraging our strong customer relationships and operational strengths.”
Mafatlal Industries remains optimistic about further growth opportunities in government contracts and the digital infrastructure space, supported by its enduring industry presence and commitment to high standards in project execution.
