February 18, 2024
Lagnam Spintex Defies Market Sell-Off with Strong Q3 Performance
Finance Stock Markets

Lagnam Spintex Defies Market Sell-Off with Strong Q3 Performance

Lagnam Spintex Defies Market Sell-Off with Strong Q3 Performance/Pixabay

Lagnam Spintex Defies Market Sell-Off with Strong Q3 Performance

Despite a heavy sell-off in the small-cap index and other segments of the Indian stock market, Lagnam Spintex shares witnessed robust buying interest on Monday. The small-cap stock opened positively at ₹117.55 apiece on NSE and garnered attention from Dalal Street bulls after announcing its Q3 results for 2024.

Q3 Financial Highlights

In Q3FY24, Lagnam Spintex reported impressive financial results, showcasing substantial growth both yearly and sequentially. Total revenue for the quarter stood at ₹123.63 crore, marking a remarkable YoY growth of 73.32% from ₹72.16 crore in the corresponding period of the previous fiscal year. On a quarter-on-quarter basis, total revenue surged from ₹92.58 crore to ₹123.63 crore, reflecting a substantial QoQ rise of over 33.50%.

Profit After Tax (PAT) in Q3FY24 reached ₹4.63 crore, a significant improvement compared to ₹0.23 crore in Q3FY23. This impressive YoY growth in EBITDA exceeded 1900%. Moreover, the company’s PAT in Q2FY24 was ₹1.30 crore, indicating a sequential growth of over 255%.

Factors Driving Revenue Growth

Lagnam Spintex attributed the increase in total revenue to the addition of a new product profile as part of its expansion project and penetration into new markets both in exports and the domestic sector. The Export Turnover notably jumped from ₹15.11 crore in Q3FY23 to ₹62.02 crore in Q3FY24, constituting 50% of the total revenue. The company witnessed a 310% increase in export revenue in Q3FY24 compared to the same period last year.

Management’s Perspective

Anand Mangal, Promoter & Managing Director of Lagnam Spintex, expressed satisfaction with the company’s performance, highlighting an uptick in cotton yarn demand during the quarter. Mangal emphasized the well-timed completion of the expansion project, enabling the company to capitalize on market opportunities. He also mentioned the positive reception of the company’s product quality in both domestic and export markets.

Renewable Energy Initiatives

Lagnam Spintex is making significant strides in renewable energy, having commissioned a 4.4 MW Rooftop Solar project. The company is actively looking to add another 0.5 MW shortly, demonstrating a commitment to energy cost savings and sustainable practices.

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