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DailyMirror.news ,Ahmedabad, 13 August 2024:Axita Cotton Ltd, a prominent manufacturer and exporter of high-quality cotton bales, cotton seeds, and cotton yarns in India, has proposed the issuance of bonus equity shares in a 1:3 ratio (1 bonus equity share of Re. 1 each for every 3 fully paid-up equity shares held as on the record date), pending shareholder approval.
The company also released its financial results for the first quarter ending 30 June 2024. Axita Cotton Ltd reported a net profit of Rs. 3.54 crore and a profit before tax of Rs. 4.96 crore for Q1FY25. The company’s total income for this period stands at Rs. 154.96 crore, with an EBITDA of Rs. 5.73 crore.
Reflecting on the company’s performance, Mr. Nitinbhai Patel, Chairman and Managing Director of Axita Cotton Ltd, stated, “We are pleased to report strong quarterly results despite the challenging industry conditions and global economic sluggishness. The central government is making significant efforts to open new markets. The Indian textile industry remains a key sector for the country, with government policies and initiatives pushing the industry to become globally competitive and increase its global market share.”
For the fiscal year ending 31 March 2024, Axita Cotton Ltd reported a net profit of Rs. 20.33 crore, a profit before tax of Rs. 27.30 crore, and a total income of Rs. 1,104.38 crore.
Axita Cotton’s production facility is strategically located in Kadi, Mehsana district of Gujarat, near the cotton-rich regions of Saurashtra and other parts of Gujarat. This location allows the company to source the finest raw materials, ensuring top-notch quality in its products.
The global organic cotton industry is rapidly expanding as consumers become more conscious of the environmental and social impacts of conventional cotton production. In 2020, the global market for organic cotton was valued at $1.3 billion, and it is projected to grow to $2.5 billion by 2025.
India, as the largest cotton producer globally, plays a crucial role in the industry. Cotton is a vital crop for the Indian economy, supporting the livelihoods of millions in rural and semi-urban areas by providing direct and indirect employment, including for a large number of women. The Indian textiles industry’s deep connection to agriculture and its cultural significance make it unique among the country’s industries.
