Filatex India Q4 FY25 Results: Profit Rises Amid Expansion Plan

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Filatex India Q4 FY25 Results: Profit Up 21.6%, Revenue Grows 5% Amid Expansion Plans

By S Jha

New Delhi, April 27, 2025: Filatex India Limited, a leading synthetic yarn manufacturer, reported revenue and profit growth in its Q4 FY25 results. The company management also has plans for expansion.

Filatex announced its Q4 FY25 results for the quarter ending March 31, 2025, reporting a 21.6% surge in net profit to ₹134.6 crore, up from ₹110.6 crore in Q4 FY24.

Revenue rose 5% year-on-year to ₹1,080 crore from ₹1,026 crore, driven by stable demand despite margin pressures. The company’s EBITDA for Q4 FY25 increased 16% to ₹76 crore from ₹65 crore, with annual EBITDA margins rising to ₹257.7 crore for FY25.

Filatex India also reported a robust operating cash flow of ₹312 crore, nearly double the ₹167 crore recorded in FY24. The board recommended a final dividend of ₹0.25 per equity share, subject to shareholder approval, signaling confidence in future growth.

Filatex India’s Chairman and Managing Director, Madhu Sudhan Bhageria, highlighted the company’s strategic focus in a statement: “We are well-positioned to benefit from the market’s turnaround, with encouraging growth in demand and margins since October.”

Bhageria also emphasized sustainability, noting the company’s push into recycled polyester production to align with global environmental goals.

Business Upturn noted Filatex India’s optimism, stating, “Management remains confident about future growth, leveraging a positive shift in demand trends.” However, some analysts expressed caution. A trade policy expert on X remarked, “Stable demand is a positive sign, but margins are still pressured. Filatex needs to address cost challenges to sustain this growth.”

Another X user, identifying as a financial analyst, added, “The 21.6% profit surge is impressive, but the slight annual revenue dip to ₹425.22 crore from ₹428.59 crore in FY24 raises questions about long-term scalability.”

The company also announced expansion plans, including a ₹24 crore investment in a hybrid power project with Torrent Power in Gujarat, set for commissioning by September 2025, and a ₹155 crore project to boost manufacturing capacity for Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), and Draw Textured Yarn (DTY) at its Dahej unit by June 2026.

Filatex India’s market cap stands at ₹2,031.08 crore. Experts stated that the company has a Return on Equity (RoE) of 9% but a concerning annual revenue de-growth of 1%. They argued that the company’s future hinges on navigating cost pressures and leveraging its expansion to capitalize on market recovery.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.