Suryalakshmi Cotton Mills Q1 profits posts sharp decline

Suryalakshmi Cotton Mills reported a significant fall in its financial performance for the quarter ended June 2024. Net profit dropped by 60.55 per cent to Rs 0.43 crore compared to Rs 1.09 crore in the same period last year.

The company also witnessed a decline in sales revenue, which fell by 9.14 per cent to Rs 158.70 crore from Rs 174.66 crore in the previous quarter. This resulted in a lower operating profit margin of 7.70 per cent compared to 6.65 per cent in the corresponding quarter of the previous fiscal year.

The reasons for this drop in profits have not been disclosed by the company. However, analysts suggest challenges in the textile sector, including rising input costs and subdued demand, could have impacted the company's performance. Suryalakshmi Cotton Mills will need to implement strategic measures to address these challenges and improve its financial position in the coming quarters.