Filatex is a manufacturer of Polyester Filament Yarn for textile and other applications. The company has reported consistent growth in revenues and operating profits over the last five years. It reported operating profits of over 40cr on revenues of almost 500cr in the last financial year while employing moderate net debt of just over 64cr. The business is exposed to the risks of viable substitutes such as cotton and other fibres when they sell at attractive prices. It is also exposed to raw material price spikes, high competition (imports as well as domestic) and requirement for heavy capital expenditure to maintain (presumably) competitive position in a capital-intensive industry.
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