Mohit Industries doubles yarn exports in Q1

Mohit Industries has delivered revenue growth in the first quarter ending June 30 of fiscal 2012-13. However net profits are down when compared with the period a year earlier.

In the reporting quarter, sales climbed to Rs 396 million, up 5.31 percent from a year earlier, but fell 12.77 percent from its previous quarter ending March 31, 2012. Net profits dipped to Rs 10 million, down 9 percent from a year ago.

But when compared with the quarter ending March 31, 2012, net profits skyrocketed by an astounding 900 percent when it stood at just 1 million. These figures are commendable considering the volatile environment the Indian textile sector is facing.

“We had a building materials division in the previous fiscal year, which we hived off. If we just consider sales of the textile division, our revenues have actually grown by around 15 percent in the April-June quarter”, says Manish Saboo – Director, Mohit Industries.

He adds, “We more than doubled our yarn exports year on year in the first quarter ending June 2012. From Rs 50.81 million in quarter ending June 2011, exports surged to Rs 104.41 million, up a massive 105.49 percent”.

Explaining the dip in net profits, he says, “The building materials division generated decent margins in first quarter of the previous fiscal and interest rates and power costs too have shot up in the last one year. At the same time, we have not been able to pass on these added costs in our prices, which explains the decline in net profits”.

Mohit recently expanded yarn texturising capacity from 1,500 tons per month to 2,000 tons per month. It also has a fabric production capacity of 1 million meters per month, which produces various varieties of fabrics on modern and advanced technology looms. 

Discussing their future expansion plans, Manish Saboo reveals, “We are hiking our yarn capacity by another 30 percent to 2,600 tons and also doubling our fabric capacity to 2 million meters in the near future”.

Manish is a little bit apprehensive of the current quarter, but very optimistic of the rest of the fiscal year, when he says, “The current quarter seems to be more difficult then the previous quarter, but am very optimistic of the third and fourth quarter. We expect European markets to stabilize by then”.

Mohit exports nearly 35 percent of its overall production to around 25 countries and are now exploring the opportunity to also export fabrics. It exports yarn to South and Latin America, European countries, South Korea to name a few. 

“We have made inroads in to markets previously dominated by the Chinese like Mexico, Brazil, Columbia, Peru, etc on the strength of our quality”, he informs with pride. “We started looking at those markets as a result of the focus market policy of the government”, he adds.