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Rajapalayam Mills Q3 profit down 41% at Rs 3.90 cr
07
Feb '14
Tamil Nadu-based yarn manufacturer Rajapalayam Mills has reported a decline of 41.35 per cent in its standalone net profit at Rs 3.90 crore for the third quarter ended December, 2013, as it faced spurt in capital outflows amid depreciating currency and higher raw material and fuel cost.
 
The company, a part of renowned Ramco Group, had posted the standalone net profit of Rs 6.65 crore in the corresponding period last year, Rajapalayam Mills said in a filing to Bombay Stock Exchange.
 
However, the net sales of company for the quarter rose by 33.32 per cent to Rs 111.89 crore, from Rs 83.92 crore for the prior year period. Driven by robust revenues from textile segment, total income of company increased to Rs 112.18 crore from Rs 86.92 crore in the year ago period, registering a growth of 29.06 per cent on year-on-year basis.
 
During the period under review, earnings per share for the quarter stood at Rs 5.00, registering 44.44 per cent decline over previous year period. 
 
Sales revenue  from the textile segment, which includes ring yarn, compact yarn, elitwist compact yarn, TFO doubled yarn, gassed yarn, slub & multicount yarn, model / tencel yarn, oe yarn and organic cotton yarn, was driven by higher demand from emerging and developed nations.
 
However, raw material and fuel cost, which constitutes a significant percentage of the company’s total expenses, increased to Rs 58.60 crore and Rs 12.71 crore, respectively, during Q3.
 
The accumulated stock also remained a concern for the company which rose to Rs 2.83 crore. The power cut in Tamil Nadu had worsened during the period which led to mismatch between increased demand for electricity and shortage in the supply, affecting the capacity utilization of mills in the state.
 

Fibre2fashion News Desk - India

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