Axita Cotton Limited, a prominent player in India’s cotton industry, has proposed a bonus issue of equity shares in the ratio of 1:3, subject to shareholder approval. This entails issuing one bonus equity share for every three fully paid-up shares, enhancing shareholder value.The company has also reported its financial results for Q1 FY25, showcasing a net profit of Rs. 3.54 crore, with a profit before tax of Rs. 4.96 crore.
Total income for the quarter stood at Rs. 154.96 crore, and EBITDA reached Rs. 5.73 crore, reflecting robust operational performance amidst a challenging market environment. Mr. Nitinbhai Patel, Chairman and Managing Director, lauded the company’s performance, highlighting the supportive role of government policies in advancing the Indian textile industry’s global competitiveness. “Despite the global economic sluggishness, we are pleased with our strong quarterly results,” Patel stated.
For the fiscal year ending 31 March 2024, Axita Cotton reported a net profit of Rs. 20.33 crore, a profit before tax of Rs. 27.30 crore, and total income of Rs. 1,104.38 crore. The company’s facility in Kadi, Gujarat, leverages proximity to major cotton-growing regions, ensuring top-quality raw materials and products.The global organic cotton market is on the rise, projected to grow from $1.3 billion in 2020 to $2.5 billion by 2025, underscoring the increasing consumer shift towards sustainable cotton production.
