Kolkata-based Cheviot Company, a maker of jute and jute-based fabrics has consistently maintained its profit margins above 10% for past five financial years despite a tough environment.
Kolkata-based Cheviot Company, a maker of jute and jute-based fabrics has consistently maintained its profit margins above 10% for past five financial years despite a tough environment.
It has been the best-performing on profit making basis among its peers in recent years. The company which reported 14% jump in net sales at ₹390 crore for the financial year ended March 31, 2017 and 24% increase in net profit at ₹46%, maintained a profit margin of nearly 12%, the highest in the jute sector.
Its nearest competitor Gloster and Ludlow Jute Speciality reported profit margin of 9.1% and 2.1%, respectively, for FY 2017. For the nine months ended December 31, 2017, the company reported 45% jump in net profits with a profit margin of 17%.
The company’s debt was ₹13.47 crore as on March 31, 2017 compared to its reserves of ₹455 crore. The stock rallied almost 16% between January 5 and January 25 after the government on January 5 imposed anti-dumping duty ranging from $ 6.30 to $ 351.72 per tonne on imports of jute and its products from Nepal & Bangladesh.
This move, according to analysts, could well help the Indian jute companies to increase their margins. Currently shares are traded at ₹1,400.
Demand of jute goods from overseas markets remained sluggish. There has been a steel fall in export of jute yard from India. However, significant steps taken by the government includes extension of the mandatory packaging norms, promotion of jute diversified products like launching the jute CFC schemes and promotion of jute geo textile among others.
The Cabinet Committee on Economic Affairs (CCEA) early this year extended the mandatory packaging of foodgrains and sugar products in jute bags for the year ending June 2018.
The promoters’ holding in the company stood at 75% at the end of December 2017 while institutions and non-institutions held 0.17 % and 24.83 %, respectively.
It has been the best-performing on profit making basis among its peers in recent years. The company which reported 14% jump in net sales at ₹390 crore for the financial year ended March 31, 2017 and 24% increase in net profit at ₹46%, maintained a profit margin of nearly 12%, the highest in the jute sector.
Its nearest competitor Gloster and Ludlow Jute Speciality reported profit margin of 9.1% and 2.1%, respectively, for FY 2017. For the nine months ended December 31, 2017, the company reported 45% jump in net profits with a profit margin of 17%.
The company’s debt was ₹13.47 crore as on March 31, 2017 compared to its reserves of ₹455 crore. The stock rallied almost 16% between January 5 and January 25 after the government on January 5 imposed anti-dumping duty ranging from $ 6.30 to $ 351.72 per tonne on imports of jute and its products from Nepal & Bangladesh.
This move, according to analysts, could well help the Indian jute companies to increase their margins. Currently shares are traded at ₹1,400.
Demand of jute goods from overseas markets remained sluggish. There has been a steel fall in export of jute yard from India. However, significant steps taken by the government includes extension of the mandatory packaging norms, promotion of jute diversified products like launching the jute CFC schemes and promotion of jute geo textile among others.
The Cabinet Committee on Economic Affairs (CCEA) early this year extended the mandatory packaging of foodgrains and sugar products in jute bags for the year ending June 2018.
The promoters’ holding in the company stood at 75% at the end of December 2017 while institutions and non-institutions held 0.17 % and 24.83 %, respectively.