FILATEX INDIA LTD - ANNUAL REPORT 2017-18 - REVIEW

FILATEX INDIA LTD

ANNUAL REPORT

2017-18

·       Filatex india Limited manufactures synthetic filament yarns with wide range of products. 

·       The company was  promoted by Late Shri Ram Avtar Bhageria, Shri Madhu Sudhan Bhageria, Purrshottam Bhaggeria and Madhav Bhageria.

·       Filatex India has  2 production facilities in Dadra & nagar havelli (UT) and Dahej (Gujarat).

·       Polyester will be the fiber of the future. So, Filatex has focused its future growth plans on Polyester Filament Yarns.

·       Recent Mile Stones

·       2018

·       Commissioned bright Polymerization of 300 TPD for spinning 190 TPD of FDY, 25 TPD of POY and 85 TPD of Bright chips at Dahej, Gujarat.

Products (MTPA)                           Production

Polyester Chips – Semi dull       64,600

Polyester Chips – Bright-          31,000

Polyester POY -           Semi dull       123,700

Polyester POY –          Bright -         9,000

Polyester DTY -           Semi dull –    75,900

Polypropylene DTY-     Semi dull-     4,800

Polyester FDY -           Semi dull -    50,300

Polyester FDY –           Bright  -        81,200

Narrow Woven Fabrics -                  2,500

Grand total -                                   443,000

CAPTIVE :                                       114,700

NET  :                                             328,300

%AGE   :                                          100.0%

·       EXPORTING TO 34 COUNTRIES ACROSS GLOBE

·       OVER 50% OF DTY PRODUCTION IS EXPORTED

·       EXPORTS ARE >20% OF REVENUES IN FY 18

·       CAPACITY INCREASED OVER THE YEARS FROM 500 MTPA TO 328300 MTPA

·       FINANCIAL PERFORMANCE IN 2018

·       REVENUE :1928 CR up 24% YoY

·       EBITDA   : 157 CR ; Up 18% YoY

·       PBT        : 93 Cr

·       PAT : 60 Cr – up 47% YoY

·       IN 2018 – EXPORTS AMOUNTED TO 379 CR

·       achieved major certifications like ISO  9001 : 2015, ISO 14001 : 2004, BS OHSAS 18001 : 2007 and OEKO  TEX – Standard  100.

·       IN Q1 FY 19, NET SALES WERE RS.704 CR AGAINST 430 CR IN Q1 FY 18 UP64%YOY AND 22% QOQ

·       IN Q1, NET PROFIT WAS 20 CR AGAINST 14 CR IN Q1 FY 18 A GROWTH OF 41% YOY AND 15% QOQ

·       EPS IS 0.91

·       MP :47

·       52 W L IS RS.30 HIGH WAS 59

·       VOLUME 140000

·       FV RS.2

·       YB MP :39 ; +21%

Annual Report for  FY  2017-18. 

Over the years, Dadra has grown to a capacity 130 tonnes per day, producing a wide range of products like Partially oriented Yarn (PoY),draw Texturized Yarn (dTY), and coloured yarns.

The new plant located at Dahej, Gujarat, is a CP unit of 600 TPD  and POY  of 260 TPD.  

At present the capacity has increased to 328300 TPA . Company has created its footprints in uncharted path  in 34 countries for  exporting its products.

Future Prospects

Company has spotted some debottlenecking opportunities in the plant which will help it increase polymerization capacity from 900 TPD  to 1050 TPD . More polymer availability would also create an opportunity to dovetail more of value added products.  

Taking necessary steps to augment the debottlenecked capacity by this year end and it plans to add more POY  and DTY  capacity, which will be commissioned in FY20.

It has dependable suppliers, supportive bankers and reliable customers. 

Basically, Filatex now has become one  STOP shop, catering to wide range of domestic and international customers.

The  product  basket  at  Dahej  facility,  at  present,  offers  Partially  Oriented  Yarn  (POY),  Fully  Drawn  Yarn  (FDY),  Drawn  Textured  Yarn  (DTY)  &  Chips  in  Semi  Dull  range.  

·       RISKS :

·       Exposed to the risk of price fluctuation of raw and hedging activities materials as well as finished goods. The Company proactively manages

·       these risks through forward booking Inventory management and proactive vendor development practices. 

·       Company’s reputation for quality, products differentiation coupled with existence of powerful brand image with robust marketing network mitigates the impact of price risk on finished goods.

·       Company takes forward cover in respect of its major foreign currency exposure such as for imports, repayment of borrowings & interest thereon Denominated in foreign currency and export receivables

·       At global level, of 100 million tons, manmade fibers had a share of 68% and all natural fibers including cotton have the balance of 32%. There is no second thought that polyester has gradually become the common man’s fiber.

·       The operations of company’s Noida (UP) plant were closed w.e.f. 17th November, 2017 .

·       GROWTH PLAN

·       Company’s recent expansion of adding a stream of Bright polymer is completed. Commercial production of Bright POY/ FDY & Chips was started from 7th March, 2018.The facilities at Dadra plant are being utilized to produce all types of colour yarns, customized to its customer needs.

·         CHALLENGES AND THREATS

·       i) Adverse volatility in raw material prices can affect the performance.

·       ii) Uncertain availability of PTA from domestic suppliers on account of their unforeseen breakdowns can reduce capacity utilization at times.

·       iii) Low bargaining power against large suppliers of key raw materials.

·       iv) High price of PTA in domestic market on account of anti dumping duty.

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