BSL Ltd. continues to show resilience in profitability despite headwinds in Q3FY24

BSL Limited (BSE: 514045/NSE: BSL), a pioneering company in the textile industry, operates a fully integrated unit that encompasses spinning, weaving, processing, and manufacturing capabilities using state-of-the-art technologies sourced globally has published its unaudited financial results for the Q3 & 9M FY24 quarter that ended on 31st December 2023.

Q3 & 9M FY24 Key Highlights & Financial Performance (₹ in Cr.):

Performance highlights for Q3 FY24

- Revenue from Operations for Q3FY24 decreased by 4.3% on QoQ basis and increased by 58.4% on YoY basis to ₹171 crores.

- In Q3FY24, EBIDTA stood at ₹18 crores, showing an increase of 12.9% on a QoQ basis and 19.9% on a YoY basis. The EBIDTA margin for Q3FY24 was 10.5%, compared to 8.9% in Q2FY24.

- PBT for Q3FY24 stood at ₹5.1 crores as compared to ₹3.6 crores in Q2FY24, up by 43.8%.

- PAT for Q3FY24 stood at ₹3.9 crores compared to ₹2.5 crores in Q3FY23, up by 55.7%, with a PAT Margin of 2.3%, up by +88 bps on a QoQ basis.

Performance highlights for 9M FY24

-Revenue from Operations for 9M FY24 grew by 44.5% to ₹510 crores as compared to ₹353 crores in 9M FY23.

- EBIDTA for 9M FY24 stood at ₹49 crores as compared to ₹38 crores in 9M FY23. EBIDTA margin for 9M FY24 stood at 9.6% as compared to 10.9% in 9M FY23.

- PBT for 9M FY24 stood at ₹12 crores as compared to ₹17 crores in 9M FY23.

- PAT for 9M FY24 stood at ₹9 crores as compared to ₹13 crores in 9M FY23 with a PAT Margin 1.7%.

Commenting on the results, Mr. Nivedan Churiwal, Managing Director of BSL Limited said, "Amidst global economic challenges, our company has not only consistently maintained profitability quarter after quarter but has also shown resilience in the face of declining topline growth. This positive trend isn't solely due to spinning side price increases; rather, it stems from improved capacity utilization for value-added products and a decline in raw material prices. Although geopolitical tensions, especially in regions like the Red Sea, may present challenges ahead.

Despite persistent challenges in the yarn business, our House furnishing segment, covering both Domestic and Global brands, has demonstrated encouraging growth signs, even as the retail market remains subdued post the festive season. Our unwavering focus remains on increasing capacity utilization and expanding market share across key channels.

Maintaining a bright outlook on our long-term growth potential, we have successfully completed essential capital expenditures, positioning ourselves to meet future demand effectively. With resilience, strategic planning, and a dedication to excellence, we navigate the business landscape with confidence, turning challenges into opportunities for sustained success."

Shares of BSL Limited was last trading in BSE at Rs. 191.65 as compared to the previous close of Rs. 200.25. The total number of shares traded during the day was 3097 in over 426 trades.

The stock hit an intraday high of Rs. 205.00 and intraday low of 185.30. The net turnover during the day was Rs. 605608.00.

Source : Equity Bulls

Keywords

BSL INE594B01012 Q3FY24 9MFY24 ResultUpdate