Sutlej Textiles and Industries Limited (STIL), incorporated in the year 2005 is a part of K.K Birla Group having interest in diverse fields like Fertilizers, Engineering, Textiles, Sugar, Tea, Coffee, Food Products, Media, Information Technology, Biotechnology and Shipping.

Company’s spinning and weaving division manufactures cotton yarn, blended yarn, woven fabrics and other specialty yarns such as modal, lycocell and tencel.

Its home furnishing division product offering includes curtain fabrics, seat covers, mattress covers, bed spreads and kitchen linen.

Its garments division manufactures 1.6 million trousers annually and is also planning to start the production of suits and blazers.

STIL has an installed capacity of 2,53,000 spindles and 60 looms as of March 31, 2010. However STIL is predominantly a yarn manufacturer with sales of cotton yarn contributing around 27% and that of synthetic yarn contributing around 67% to its total revenue in FY10.

During the quarter ended 30th Sept, 2010, the net sales of the company reported an increment of 33.69% on y-o-y basis to Rs 380.85 cr as against Rs 284.87 cr during the corresponding quarter last year. On sequential basis, the company's net sales grew by 9.23% from Rs 348.67cr.

On operating front, the EBIDTA registered a growth of 68.83% to Rs 68.56cr from Rs 40.61cr as against the corresponding period last year, while on sequential basis EBIDTA registered an increment of 24.02% from Rs 55.28cr. The operating margins improved by 375bps to 18% against 14.26%.

The net profit of the company increased robustly by 276.12% YoY to Rs 22.68 cr as against Rs 6.03 cr during the corresponding quarter, while on Q-o-Q basis the net profit increased by 45.95% from Rs 15.54cr. The interest cost of the company decreased by over 18.81% to Rs 12.04 cr against Rs 14.83cr during the corresponding period last year.

The company's robust performance is due to the overall recovery in the global textiles scenario. The favorable shift towards synthetic yarn considering the 40-55% spurt in cotton yarn pricing over a short period of time also led the company to realize higher earnings. The company also gets benefitted from the strong demand of fabrics and garments in the market.