Home / Knowledge / News / Textiles / Volatile rupee hits Alok Industries' bottom-line
Volatile rupee hits Alok Industries' bottom-line
04
Dec '13
The continuous volatility in the rupee saw Alok Industries reporting a steep decline of 66.5 per cent in net profit for the quarter ended September 30, 2013 at Rs 96.98 crore as against Rs 289.62 crore in the corresponding quarter of previous fiscal.

Alok Industries, India's leading fully integrated textile company with a dominant presence in the Cotton and Polyester segments, reported a foreign exchange loss of Rs 74.57 crore in the September quarter as against a gain of Rs 67.05 crore in the year ago period. From around 59.5/USD on July 1 to 68.85 on August 28, the rupee fell 13 per cent and turned out to be the worst performing Asian currency, causing huge dent on the financials of the company.

Also, weighed down by rising input costs, the operating EBITDA of the company fell 4.5 per cent at Rs 879.76 crore from Rs 921.65 crore in the year ago period.

The company performed well in terms of revenue growth in Q2 FY14, growing at a pace that was not only faster than the corresponding quarter but also than any other quarter in the previous year, although net profit declined on account of higher costs and rupee’s depreciation.

Alok Industries’ revenues grew 12.5 per cent at Rs 3,740.67 crore in Q2 FY’14 from Rs 3,324.77 crore in Q2 FY’13. Revenue break-up showed that the company reported a growth in both the domestic and international sales. Growth in domestic revenues was 6.7 per cent during the quarter, but internationally it was 30 per cent.

The situation of Alok Industries clearly indicates that despite the improvement in demand in domestic as well as international markets, the bottom-line continues to stay under pressure as such companies shy away from raising prices amidst global economic slowdown.

Fibre2fashion News Desk - India


Must ReadView All

May 31 deadline for registration of chemicals under REACH

Textiles | On 23rd May 2018

May 31 deadline for registration of chemicals under REACH

May 31 is the final deadline for companies to register all chemicals...

US cotton production projected to decline in 2018: USDA

Textiles | On 23rd May 2018

US cotton production projected to decline in 2018: USDA

US cotton production is forecast at 19.5 million bales, nearly 7 per...

Pakistan's textile exports up 8.13% in July-April FY18

Textiles | On 23rd May 2018

Pakistan's textile exports up 8.13% in July-April FY18

The value of textile and garment exports from Pakistan increased by...

Interviews View All

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth 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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search