Q1FY10 - an encouraging start for Alok: CFO, Mr Sunil Khandelwal
Alok Industries, the domestically as well as internationally renowned Indian textiles giant, has recently declared its first quarter results for financial year 2009-10. In a talk with News team at fibre2fashion, expressing his delight on the performance of his company in the start of this fiscal, Mr Sunil Khandelwal, CFO, Alok Ind, says, “The performance of the company for the 1st quarter of the current financial year is quite encouraging. The sales increased by 44.69% to Rs. 786.26 crores as against Rs. 543.44 crores in the previous corresponding quarter. The exports also grew by 33.81% to Rs. 264.86 crores from Rs.197.94 crores.”
The obvious interrogation to follow, by our team, was definitely- “how?” Revealing details of the growth factors in Netsales and increase in PAT by 6.94%, Mr Khandelwal further quoted- “The growth in sales came on account of additional capacities added upon completion of the projects. The other contributors for sales growth are Alok's unique product offerings across the value chain, consolidation of sourcing by the overseas retailers and diversified market and customer base, whereas the increase in operating PAT is mainly on account of increase in sales. However, the increase in PAT is not in proportionate to increase in sales due to higher incidence of depreciation and interest. However, going forward, with increase in sales and benefits of backward integration getting accrued on cotton as well as polyester side, we expect to have further improvement in PAT margins.”
Our team also noticed 34% growth in the company's export sales for Q1FY10, and requested Mr Khandelwal to help us understand if this points up revival in global economy, or was a resultant of add-ons in clientele, and if later holds true, which regions were added as new clientele base. CFO retorted saying, “Increase in exports is primarily due to the consolidation of sourcing by large global buyers to save on logistics and procurement costs and better co-ordination. Alok became their preferred choice due to its end to end integration, scale of operations, efficiencies and a capability to satisfy demanding customers with large volume orders on time and product development and designing capabilities. There are also sign of global economic revival mainly in US as indicated by the demand and enquiries that we are receiving. The order book position of the company is quite healthy. The company has been adding new clienteles and penetrating into new geographical markets.”
Mr Khandelwal has also provided the geography wise break up of company's exports for Q1FY2010. Please click here for your ready reference.
Further detailing the strategic plans for this financial year, Mr Khandelwal also divulged that the major focus of company, this year, is to consolidate its operations i.e. improving efficiencies, reducing costs and strengthen product development and designing capabilities.
Our team also sought his views on declared union budget. He opines, “The Budget in general was development oriented budget with focus on expenditure on infrastructure and increasing the consumption. As far as Textile Industry is concerned, it was neutral.”
At the fag end of the talk, we asked how he envisages the quarters in offing. To which he replied, “With addition of new capacities consequent to completion of projects and comfortable
order book position, we are confident that the subsequent quarters would also be encouraging.”
To view Q1FY10 of Alok Ind click here.
Alok Industries Ltd