Uncertain environment does not deter Indian textile makers

Pali and Rajasthan based – Bangurs-led MSUM Ltd too posted a sales growth of 23.75 percent. However net profits skyrocketed from just Rs 23 lakhs in quarter ending June 30, 2011 to Rs 5.90 crores in the reporting quarter, up a gigantic 2358.33 percent.

Mr Govind Sharda – Executive Director of MSUM summed up by saying, “The yarn market was very good in the period and the cotton we had in stock was purchased at a time, when they were ruling low. We also tried to cut on production costs wherever possible. Coupled together, these factors led to strong growth in our revenues as well as net profits”. 

Lambodhara Textiles too managed to post growth in both net profits and revenues. Sales surged 26.58 percent and net profits zoomed 430 percent. Mr Santossh R, the MD, attributes surge in revenues mainly to a better product mix and the hike in net profits to a niche product range made up of speciality yarns. He also expects the current quarter ending September 30 to be in line with the performance in the quarter ended June 2012.

Ahmedabad based Soma Textiles was one more company which chalked a turnaround of its profits. It posted a net profit of Rs 7.06 crores against a loss of Rs 3.66 crores a year earlier. It also managed to hike sales by 10.58 percent.

“Stability in cotton prices and foreign exchange fluctuations helped script a turnaround in net profits”, Mr Pariwal CFO of Soma says modestly. He adds, “Our Baramati plant has done exceedingly well in the quarter compared to same quarter last year, which led to a production hike and in turn sales”.

Vadodara-based and polypropylene (PP) producer – Zenith Fibres achieved a 10.68 percent rise in revenues and a considerable 53.33 percent surge in net income. Mr KD Sharma – CFO attributes the same to better control of expenses and also improvement in sales realisations in the quarter ending June 2012.

Banswara Syntex which posted a healthy 28.06 percent growth in Q1 sales however reported a massive negative growth of 62.27 percent in net profits. “Capital investments in machinery which came in to operation in the later part of the last fiscal year, helped Banswara clock a growth of 28.06 percent in Q1 sales”, said, Mr Shaleen Toshniwal – Director – Banswara Syntex.

“Foreign exchange fluctuations on previously booked rates, the profitability in yarn prices was low and thirdly garment sales were also sluggish, which led to profits sliding by as much as 62 percent”, he adds.