Home / Knowledge / News / Textiles / TT records highest ever profit
TT records highest ever profit
27
May '11
TT Ltd. has recorded its highest ever profit in its nearly 60 years of existence. The 'Only Cotton' company has seen a skyrocketing 297 percent increase in its annual profit for the year ended March 31, 2001 compared to the previous fiscal.

The profit before adjustment for deferred taxes also increased to Rs. 239.5 million in the fiscal 2010-11 from Rs. 60.3 million in 2009-10. The company's profit after adjustment of deferred tax works out to Rs. 152.3 million. Cash profit during the period rose from Rs. 155.8 million to Rs. 352.5 million.

The net sales during the fiscal 2010-11 saw a whopping 38 percent growth to Rs. 4.86 billion from Rs. 3.53 billion a year ago. The company's branded knitwear sales in the domestic market increased by about 50 percent while exports increased by about 40 percent.

The increased demand of textiles worldwide after the 2008-09 financial crisis coupled with the company's focus on value added products that carry higher margins, is the primary reason for such an exponential growth, according to Mr. Sanjay K Jain, the Managing Director of the company.

The New Delhi-based company, however, missed its sales target of Rs. 5 billion for 2010-11 due to two reasons. First was the Government's decision to suspend yarn exports from December 1, 2010 to March 15, 2011. The other reason was the imposition of excise duty on garments in domestic market.

The company had earlier announced its decision to sell its ginning factory located in Gondal, Gujarat for Rs. 187.5 million. This step will not only reduce the company's exposure to cotton fibre, but would also give the company a profit of Rs. 50 million in FY12.

The revenue from the Gondal factory sale would fuel the company's ongoing Rs. 1500 million expansion project, which includes a Rs. 950 million yarn project in Rajula, Gujarat, Rs. 300 million garment unit in Tirupur, Tamil Nadu, Rs. 150 million PP yarn project in Gajroula, UP, and Rs. 100 million for modernisation.

The expansion projects are being implemented under the Technology Uprgradation Fund (TUF) scheme of the Government of India, which makes them eligible for interest subsidy. It also means that the company's competitiveness would increase after the scheduled withdrawal of TUF in March 2012.

During the current year, the company plans to raise about Rs. 400 million through disposal of its idle or less utilized assets. The revenue from such sale would be used for expansion of its value added segment.

Thus, the company is adopting a two-fold strategy of reducing its exposure to volatile commodity business like cotton fibre and maintaining a balance between its export and domestic markets.

As a percentage of sales, exports of the company have declined to 57 percent in FY11 from 65 percent in FY10.

Fibre2fashion News Desk - India


Must ReadView All

Sri Lanka to set up 150 mini apparel units

Apparel/Garments | On 23rd Nov 2017

Sri Lanka to set up 150 mini apparel units

A mini apparel factory was opened recently at Sri Lanka’s Menik Farm...

Egypt keen to boost ties with India in MSMEs, textiles

Textiles | On 23rd Nov 2017

Egypt keen to boost ties with India in MSMEs, textiles

Egypt is eager to boost cooperation with India, particularly in the...

India begins review of anti-dumping duty on caustic soda

Textiles | On 23rd Nov 2017

India begins review of anti-dumping duty on caustic soda

The Directorate General of Anti-Dumping & Allied Duties (DGAD), under ...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Karan Arora
Karan Arora

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

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

November 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search