Home / Knowledge / News / Textiles / Textile business surges 29% at Sangam India in Q3FY'13
Textile business surges 29% at Sangam India in Q3FY'13
29
Jan '13
Sangam (India) Ltd., one of the leading textile companies with presence in PV (Polyester/ Viscose) Dyed Yarn and Fabrics segment and a fully integrated company  from yarn to branded Fabrics,  posted robust growth in the third quarter ended December 31, 2012.

For the third quarter ended 31st December 2012, the company reported total sales of Rs 327.96 crore as compared to Rs 307.92 crore in the corresponding previous quarter. EBIDTA for the quarter stood at Rs 51.30 crore as against Rs 31.10 crore in the corresponding period last year. Higher realizations in textile business with expiry of toll business in infra-segment led to higher EBITDA during the quarter.

Operating margins improved from 10.03 percent to 15.57 percent on back change in product mix to value added fabrics in PV and fabrics. The October-December 2012 quarter witnessed a higher demand for yarn and fabrics with stable raw material prices.

During the quarter, interest charges declined from Rs 18.11 crore to Rs 16.72 crore and the company has reported Profit after Tax of Rs 11.07 crore as compared to a net loss of Rs 1.84 crore in Q3FY12. The EPS for Q3FY13 stands at Rs 2.81 per share.

During the quarter, the sales of textile business grew by 29% to Rs 327.96 crore as compared to Rs 253.92 crore in the corresponding previous quarter. No revenues of the toll division accrued in Q3FY13 as compared to Rs 54 crore, on completion of road toll collection projects.

Operational Highlights
-Textile revenue increase by 29% on YOY basis
-Operating Profit increase by 65 %
-Company posted a profit of Rs 11.07 crore against loss of Rs 1.84 crore
-In the current financial year, the denim capacity has been doubled from 16 million meters to 32 million meters per annum.

For the nine-month period, company achieved sales of Rs 1123.11 crore, up 10%  and the textile business has grown by 18.5% to Rs 1038.41 crore while toll revenue decline by 41 %, operating margin has improve by 339 basis point to 14.87 % and   net profit for the period has jump by 253 % to Rs 38.93 crore .  EPS for the nine-month period is at Rs 9.88.

Management Comment

Commenting on the quarter results, Mr. R. P. Soni, Chairman, Sangam (India) said, “The textile business has picked pace on favourable government policies to cotton price stabilisation and demand push for apparel sector. With the completion of the Denim expansion, the company has been able to capitalise by way of growth in the textile division. There are emerging opportunities for textile exporters which will enhance our growth in the sector near future.”

About Sangam (India)

Promoted by first-generation entrepreneurs Mr R P Soni and Mr S N Modani, Sangam (India) is one of the largest manufacturers of polyester viscose dyed yarn in the country. At present, Sangam India has 162720 spindles of polyester-viscose dyed yarn and 31,200 spindles for cotton yarn installed in Bhilwara along with 257 weaving machines and a 31 MW thermal power plant.

The company also has strong presence in the Indian synthetic blended fabric segment with brands like Sangam and Anmol. The company has an established client base like Reliance, Reid & Taylor, Siyaram and Grasim. Its fabric is marketed through a network of 200 plus dealers and thousands of retailers.

Sangam India


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search