Gujarat-based Sintex Industries has revised its sales and profit forecast to 15 per cent each from 20 per cent for FY-16 on account of substantial fall in the commodity prices.

The company having annual revenues of over ₹7,000 crore operates most of its businesses which involves passing on the rise or fall in input costs.

“Commodity prices have dropped substantially beyond our imagination. Petro-based commodity prices have gone down more than 20 per cent on an average basis in December quarter,” said Amit Patel, group managing director in an analyst conference call.

However, Patel also added that he does not expect any further decline in commodity prices at least in March quarter, which is the strongest historically. In nine months ended December 2015, the company’s consolidated revenues and adjusted net profit grew 12 per cent and 15.6 per cent year-on-year to ₹5,410 crore and ₹400.7 crore, respectively.

The company’s compact high-end count for cotton yarn spinning project is progressing well and 1,30,000 spindles has been commissioned.

The company is confident of achieving full commissioning of 3,24,000 spindles, which involved capex of ₹1,870 crore by March end or early April. On full capacity utilisation, which will take about nine months, the company expects the project to generate revenues of ₹800-1,000 crore in FY-17 at 19 per cent operating margin, which will be higher than its current margin of 17 per cent.

Sintex Industries is involved in the business of building materials (prefab, monolithic construction), custom moulding, storage tanks and textiles.

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