Sintex Industries posted a good set of numbers in its Q1FY16 result

Sintex Industries has business operations in two segments: textiles and plastics. Products of the company are in areas like building & construction, interiors and plastic, prefabricated buildings, industrial, electrical engineering, Environmental/ green, custom molding.

Recently, Sintex Industries announced its Q1FY16 result. The consolidated total income from operations of the company rose by 9.35 per cent and stood at Rs 1471 crore as compared to last year’s June Quarter of Rs 1345 crore. The revenue increased mainly due to the growth in segments revenue, 10.74 per cent in textile segment and 4.57 per cent in plastic segment on yearly basis. The total expenses increased by 10.32 per cent to Rs 1316 crore from Rs 1193 crore on yearly basis.

The EBITDA of the company increased by 11.81 per cent in Q1FY16 to Rs 232 crore as compared to  Rs 207 crore in Q1FY14. The EBITDA margin expanded by 35 basis points on yearly basis to 15.76 per cent. The company registered a 12 per cent growth in its consolidated net profit at Rs 69 crore during the quarter ended June 30 FY16, as compared to  Rs 62 crore in June quarter FY15, mainly due to healthy growth in its high margin custom molding business which rose by 24 per cent.

"Custom molding has grown 24 percent and I believe we are entering a high growth era with a blend of synergies flowing in future. Prefab on the back of strong order flows will keep the momentum higher in coming quarters," Sintex Industries Group MD Amit Patel said in a statement on BSE.

On the margins front, the custom molding basket is headed for better times, the Indian sales of CM basket was 33 per cent in FY09 and it increased to 41 per cent in FY15. With the strong growth momentum, the contribution could cross 50 per cent in near future. This is being regarded as a boosting  factor as the margins are double in its overseas business.

The company is queuing up with new projects, along with some initiatives taken by government to pick up enquiries, the order buildup will happen in coming quarters which will result in the inquires   converting into sales.