Salona Cotspin Limited — Results, 28-05-2025: Integrated Filing- Financial

Salona Cotspin has announced a board meeting to approve the financial results for the quarter and half-year ended March 31, 2025.

1) Revenue Performance: Consolidated revenue rose 9.14% YoY to ₹662.32 Cr, led by sustained demand in its spinning yarn segment.

2) Profitability and EPS: Net profit dropped to ₹3.33 Cr from ₹6.22 Cr YoY, with EPS falling to ₹0.63 from ₹1.18. Margin pressure came from rising raw material and finance costs despite stable volumes.

3) Operational Costs: Material costs jumped to ₹520.20 Cr from ₹443.02 Cr, while employee expenses edged higher to ₹14.36 Cr. Finance costs increased notably to ₹18.85 Cr, weighing on profitability. Other expenses also saw inflationary impact.

4) Key Metrics: Profit before tax improved to ₹8.40 Cr from ₹5.53 Cr last year. Inventory levels rose slightly to support production.

5) Balance Sheet / Cash Flow Health: Borrowings held steady around ₹144 Cr, with a slight rise in long-term debt. Cash balances improved to ₹1.12 Cr. Operating cash flow remained strong at ₹63.74 Cr, aiding working capital. Capex was sizable but mainly debt-funded.

6) Strategic Outlook: The board declared a ₹1 per share dividend, showing confidence despite margin headwinds. Focus remains on cost efficiencies and maintaining steady textile demand.

Final Takeaway: Salona shows steady top-line growth, but rising input and finance costs are pressuring profitability. Investors should monitor raw material prices and interest expenses for margin recovery ahead.