Leading Indian textile conglomerate Vardhman Textiles has reported a net loss of Rs. 430.8 million during the first quarter of fiscal 2011-12, as against a net profit of Rs. 787.2 million registered by the company during the corresponding period in previous fiscal.
The net sales of the company, however, increased to Rs. 9.60 billion during the April-June period, showing a growth of 19 percent over the company's net sales during the same period last year.
High cost of raw materials and increase in interest charges affected the profitability of the company. The company spent Rs. 6.85 billion towards purchasing raw materials, which was a substantial 67.10 percent rise compared to the cost incurred during the same quarter in 2010-11.
The company paid Rs. 496.3 million towards interest charges, which is a huge 95 percent rise over the previous year's expenses.
With a turnover of US$ 700 million, Vardhman Textiles has over 24 manufacturing facilities in five States across India.
Fibre2fashion News Desk - India
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