Sintex Industries, the plastics and textile major, has logged impressive growth of 28% in revenues to Rs 1,186 crore, in the December quarter over the preceding quarter, and about 42% year on year. It has been strong on the profit front too, with the net profit crossing the Rs 100 crore mark, to Rs 113 crore.
Strategic investment is one reason for the company doing well. Sintex had gone for 30% ownership of Durha Constructions in December 2010, and plans to completely acquire the company by end of FY’11. This is helping to strengthen the monolithic construction business of Sintex. Durha is growing 40% annually over the past two years, and specializes in civil and mechanical construction. Prefabricated systems are another key growth area for the company.
Demand and volume, both are set to grow in the coming year. The management also expects improvement in margins in custom moulding, which accounts for about 39% of the business, and which has grown by 15% over the same quarter last year. More than 50% of the revenues are contributed by building materials. The building products have grown by 76% year on year. Textiles account for just 10% of the business.
The company is expanding over geographies also, one of them being Uttar Pradesh with its schools and primary healthcare centers. The monolithic segment has an order book of Rs 2,600 crore to be executed over the next 20-21 months.
This mid-cap company with a market capitalization of Rs 4656 crore, and a price to earnings ratio of 15.5 times has witnessed a marginally downward price movement during the day to Rs167.