Suryalata Spinning Mills profitability takes a hit in H1

06 Jan '14

2 min read

Given the rise in double digit inflation, soaring raw material prices and fuel cost, Secunderabad-based yarns producer Suryalata Spinning Mills Limited continued to find trading conditions difficult in the first six months of current financial year ended September 30, 12013.

Profitability took a hit due to economic slowdown, higher consumer debts levels and tight lending standards.

Engaged in manufacturing of synthetic blended yarns of polyester and viscose, the company reported 25.09 per cent decline in its net profit for the six months ended 30 September 2013 at Rs 3.97 crore from Rs 5.30 crore in the same period a year ago.

Raw material and power cost, which constitute a significant percentage of the company’s total expenses, increased significantly to Rs 122.61 crore and Rs 16.70 crore respectively during H1 2013-14.

During the six months under review, the company’s net sales rose by 38.25 per cent to Rs 171.58 crore from Rs 124.10 crore in the same period a year ago, driven by pickup in exports.

As a result of which, total revenue of company stood at Rs 179.09 crore in the six months ended 30 September 2013, from Rs 134 crore in the same period a year ago amidst a improve in business climate in global economies.

With global market back on track of healthy growth, the company is poised to reflect sound growth both in the domestic and international markets in next six months of current fiscal, amidst revival in demand of yarns.

In tune with the changing trend, the company has already further expanded its production capacity to meet the growing demand and is poised to increase turnover and profitability by 15 per cent to 20 per cent.

Fibre2fashion News Desk - India

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