Shanti Spintex FY24 Results: Revenue Surpasses Rs. 5 Billion, PAT Reaches Rs.130 Million

Denim fabric manufacturer Shanti Spintex Limited revealed its financial results for the second half of 2024 and the entire fiscal year that ended on March 31st 2024.

Due to the high level of demand, the company's total revenue from operations in FY 2023-2024 was Rs. 5.06 billion, a 36.59% growth over FY 2022-2023. The company's profit after tax (PAT) climbed to Rs. 130.18 million, a 28.53% rise over FY23 due to the strong growth in revenue.

With an EBITDA margin of 4.87% in FY24, Shanti Spintex achieved the highest ever EBITDA of Rs 246.40 million. By successfully lowering its debt-to-equity ratio from 0.74 to 0.26, the firm has improved its financial situation and substantially lowered its debt load. As of March 31, 2024, the company's total debt was at Rs. 222.14 million. Over the previous four fiscal years, the company's revenue has gone up at a compound annual growth rate (CAGR) of 64.90%, while EBITDA and PAT have grown at CAGRs of 56.82% and 29.66%, respectively.

Mr. Rikin Bharatbhushan Agarwal, Managing Director, Shanti Spintex Limited, said, "We are delighted to share that Shanti Spintex Limited has achieved remarkable revenue and profit growth in fiscal year 2024, surpassing all previous records. Our success is attributed to the effectiveness of our market strategies, emphasis on quality product offerings and customer-centric approach. Our company has witnessed unprecedented growth in both revenue and profits, reflecting the strength and resilience of our business model. Our focus on cost optimization, process improvements, and prudent financial management has contributed to these commendable results. Looking ahead, we remain committed to pursuing growth opportunities and enhancing shareholder value."

Shanti Spintex Limited is a company that specialises in producing and selling a wide variety of denim fabrics. Power stretch spandex denim, knit denim, lightweight denim, rigid denim, over-dyed denim, and flat finish 3/1 denim are among its product offerings. These fabrics are available in a wide range of colours, such as ecru, halogen blue, sulphur black, sulphur grey, indigo blue, and IBST. The fabric weaving operation of the firm is situated in Dholi - Integrated Spinning Park, Dholka, Ahmedabad. It has the installed capacity to produce 19.27 million metric tonnes of denim fabrics annually (Mn Mt. p.a.). It significantly boosted the production of renewable energy in Amreli, Gujarat, in 2022 when it put into service a 2 MW wind energy power plant.To further demonstrate its commitment to eco-friendly operations, Shanti Spintex erected an 852 kW rooftop solar plant at its production facility in 2023.

On Tuesday, the shares of Shanti Spintex ended 5.40% lower at Rs 71.78 apiece on the BSE. The scrip achieved a 52-week-high level at Rs 96.92 on (10/01/2024) and a 52-week-low level at Rs 46.25 on (27/03/2024). The Shanti Spintex IPO was a Rs 31.25 crore book-built offering. The offering consisted of a new issuance of 26.88 lakh shares, valued at Rs 18.82 crores, and an offer for sale (OFS) of 17.76 lakh shares, valued at Rs 12.43 crores. On December 27, 2023, the shares were listed on the BSE SME.