Lagnam Spintex Posts Multifold Growth In Q3 PAT; Revenue Up 71%

At its board meeting on February 12, 2024, Lagnam Spintex Limited, a prominent producer of premium cotton yarns in India, revealed its results for the quarter that ended on December 31, 2023. Revenue increased to Rs 123.63 cr in the quarter under review, up from Rs 72.16 crore in Q3FY23, a 71% growth. Lagnam is thrilled to report that the rise in revenue has been driven by the new product persona they added as part of their expansion project and reached out to new markets both in exports and domestically.

In Q3FY24, the net profit increased to Rs 4.63 crore which was Rs 0.23 crore in Q3FY23, representing a multifold jump YoY. In Q3FY24, the basic and diluted earnings per share were 2.62 as opposed to 0.22 in Q3FY23. In Q3FY24, the export turnover jumped to Rs 62.02 cr from Rs 15.11 cr in Q3FY23. Of the total revenue generated by the firm, 50% comes from exports.

The new product offering in quality-conscious markets like Europe, Columbia, Egypt, Morocco, and Peru, as well as the established markets in Bangladesh, the United States, Italy, and so on, contributed to the 310% increase in export revenue in Q3FY24 compared to Q3FY23, according to the company.

Commenting on the performance of the company, Mr. Anand Mangal, Promoter and Managing Director of Lagnam Spintex said, "There is an uptick in Cotton yarn demand in this quarter and we are thrilled that our expansion project completion was timed well with this market opportunity. Our product quality from expansion project is well accepted in both the Domestic and Export markets which is helping us to increase our customer base."

The firm also disclosed that they are making significant strides in the direction of renewable energy, having recently put into service a 4.4 MW rooftop solar project and planning to add another 0.5 MW soon which will result in saving energy costs.