Filatex India is planning to increase its capacity by at least 60,000 tonnes in financial year 2020, said Madhu Sudan Bhageria, vice chairman and managing director of the company.

“We are already planning to put up more capacity ... we will be generating some internal accruals and we have also taken approval from the shareholders to raise Rs 150 crore in equity,” Bhageria said.

The firm witnessed a strong Q2 with the revenue jumping by 73 percent and profits increasing by 50 percent on a year-on-year (Y-o-Y) basis. The stock has seen an uptick of 26 percent since the start of the year.

“Our current capacity utilisation is around 90 percent and the numbers are improved because in last March, we have commissioned a new expansion. Because of that our topline and bottomlines have improved,” the managing director said.

“When the crude prices go down, our raw materials get affected but that is on the transition period, there is a little slower demand because everybody expects a better pricing going forward but once it is smoothened out then there is a good demand and our margins also slightly improve whenever the prices come down,” he added.

“Lower crude oil prices is a good news for us in the long run,” said Bhageria.