Ciel Textile’s woven cluster boosts 9-month group profits to Rs 437.8 mn
The woven cluster of Mauritian major Ciel Textile Ltd reported positive performance upon higher sales level, thus boosting overall profits to Rs 437.8 mn from Rs 376.9 mn a year ago, but group revenues rose only marginally to Rs 7.39 bn from Rs 7.16 bn a year ago, for the nine month period from July to March, as the knitwear cluster’s performance was not favourable. (Image: Company)
Mauritian clothing major Ciel Textile Ltd posted lower revenue of Rs 2.0 billion for the quarter ended March 2015, representing a drop of 5.0% compared to the corresponding period of 2014, however upon better operating margin of 9.6%, the entity derived higher operating profits of Rs 195.1 million.
For the nine months from 01July15 to 31March15, group revenues rose marginallyto Rs 7.39 bn from Rs 7.16 bn a year ago, while profits rose faster to Rs 437.8 mn from Rs 376.9 mn in the corresponding year-ago period.
That the finance cost of CTL dropped by 52.2% to reach Rs 8.6 million during the quarte under review, helped to derive higher profits of Rs 106.7 million against Rs 101.0 million in 2014.
The major revenue generating cluster remains the woven cluster, which accounts for 62.5% of total revenue, and it also contributed positively towards group profits upon an increase of 8.6% in sales level which stood at Rs 1.3 billion. This allowed the cluster to generate higher profits of Rs 115.4 million against Rs 67.2 million previously.
On the other hand, the Knitwear Knits and Retail segment posted unfavourable performance with drop in revenue by 21.3%, which led to losses of Rs 8.8 million for the quarter under review.
The balance sheet side showed total assets of Rs 8.3 billion and lower current liabilities can be noted compared to 2014.
The cash flow position of the entity has also improved.
Finally, the improved profitability can be attributed mainly to the strong performance of the woven cluster and the outlook of the company based on current order books shows promising for the 2015 performance.
About Ciel Textile ltd
CIEL Limited owns 56% of Ciel Textile, which is a fully-fledged subsidiary and world-class global player in textile and garment operations.
CTL is listed on the development enterprise Market and is regional one-stop shop with the vertically integrated business units from yarn spinning to finished garments.
The annual production of meter woven and knitted fabrics amount to 25 million.