SPFL presents annual report

14 Sep '07

3 min read

Sarla Performance Fibers Ltd (SPFL) presenting their Fourteenth Annual Report on the business and operations of the Company together with Audited statement of Accounts for the year ended 31st March, 2007.

Recently Company has invested about 10 crs in the expansion of Capacity of Value added products. This will increase topline of about 30%. Profitablitly will be proportionately increased.

Operations:
During the year under review the sales of the Company were Rs. 9862.89 lakh as against Rs. 8581.04 lakh in 2005-06 registering an annual growth of 14.94%. The FOB value of exports increased by 15.44% from Rs. 5279.46 to Rs. 6094.72 lacs.

Profitability:
The profit before Depreciation, Interest & Tax was Rs. 1935.18 lakh as compared to Rs. 1795.34 lakh in the previous year. After providing for depreciation of Rs. 294.48 lakh (Previous Year Rs. 259.02 lakh) & provision for taxation of Rs. 343.50 lakh (previous year Rs. 284.85 lacs) there was a profit of Rs. 1137.52 lakh as compared to Rs. 1131.94 lakh in the previous year.

Dividend:
Your Directors have recommend dividend @ 30% for the year ended 31st March, 2007.

Turnover:
The Company turnover grew by 15 per cent in FY 07. This increase can be attributed to 12 per cent volume and 3 per cent value growth.

Interest Rates:
The Company's present D/E is 0.57. It is utilizing its surplus cash for working capital purpose. Hence, its interest costs are managed reasonably well vis-a-vis growth. The rising interest rates at present are not a threat, given the Company's strategy to grow without taking significant debt.

Exchange Rate:
60 per cent of Company revenue is in hard currency and balance is deemed exports, and domestic tariff area. Also, it imports 90 per cent of its raw material creating a natural hedge. Apart from this, from time to time forward cover is taken to hedge exposure in dollar terms.

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