Net profit at Sangam India zooms 52% in Q2FY16
Net profit for the first fiscal quarter ended June 30, 2015 at Sangam (India) Ltd, one of India's largest polyester dyed yarn producer zoomed 52 per cent from a fiscal ago quarter.
In a BSE filing, the RP Soni led company said its net profit surged 52 per cent to Rs 17.20 crore in the first quarter of fiscal 2016 from Rs 11.34 crore in the prior fiscal first quarter.
Resultantly, earnings per share also rose to Rs 4.36 compared to Rs 2.88 in the corresponding period of earlier fiscal.
However, revenue declined 2.25 per cent to reach Rs 366.61 crore in the reporting period as against Rs 375.06 crore in the first quarter of fiscal 2015.
Chairman RP Soni said, “Despite softening commodity prices prevailing across the globe over the last couple of months, we have managed to contain its impact on revenue.”
In the quarter, increased focus on exports helped, export shipments soar 22 per cent year over year at the Bhilwara based integrated textiles manufacturer.
In particular, value-added denim exports climbed massively by 272 per cent over last year's second quarter, and amounted to Rs 17 crore.
Overseas shipments of polyester-viscose (PV) fabrics also rose steeply by 53 per cent year on year to which, in line with its vision to increase exports of value-added exports instead of low-margin yarn exports.
Expenditure in the reporting quarter totaled to Rs 325.1 crore, down 5.24 per cent from Rs 343.08 crore from a fiscal ago period.
Earnings from operations before other income, finance costs and taxation in the first quarter of fiscal 2016 was Rs 41.51 crore compared to Rs 31.95 crore.
Operating profit margins for the quarter improved 330bps year on year to 16.88 per cent, helped by increased integration and better raw material management.
Earnings before interest, depreciation and taxation (EBITDA) too drove up 22 per cent to Rs 61.88 crore in the first quarter of the current year from Rs 50.89 crore in the first quarter of previous fiscal.
The Sangam board of directors has approved capex of Rs 198 crore to further enhance its integration capability and also help consolidate its leadership in the PV segment.
Earlier this year, Sangam India had launched Channel Nine of branded seamless knitted garments, through which it plans to make inroads into the Indian lingerie market.
Apart from a domestic presence, the Indian textile manufacturer also exports its products to over 50 countries across the globe and has bagged a 3-star trading house status.
The company has 211,296 spindles and 437 weaving looms installed at its textile facility in Bhilwara. Besides, it also manages a 31 MW thermal plant, a 5 MW wind power plant and 1 MW solar plant.
Within India, Sangam (India) has a client base which includes the likes of Reliance, Siyaram, Grasim, etc and also operates through a network of 100 dealers and 1,000 retailers. (AR)
Fibre2Fashion News Desk – India