ESI net profit grows 12% to 14.35 crore

21 Jul '06

1 min read

Eastern Silk Industries Ltd has registered net profit of 12.70 percent to Rs14.35 crore till June, compared to Rs8.35 crore during the same period last year.

Operating profit margins have increased to 19.93 percent compared to 15.84 percent in the first quarter of 2005.

According to S S Shah, Chairman, it was possible due to the higher value addition and enhanced share of machine made fabrics.

ESI has tied up with a foreign manufacture for printing and finishing of fabrics, which would ensure timely delivery to its clients and would add to the value.

Company has just completed first round of private placement of equity aggregating 50.50 crore. Funds raised are being invested in expansion project at Anekal and the made-ups project at Bommasundra.

Anekal plant is being expanded to produce 12 lakh metres of fabrics from existing 8 lakh metres while the plant at Bommasundra on the Hosur Road is expected to be operational in the next twelve months and would be able to use 90 percent of the fabrics made in Anekal.

Company has already entered home furnishing arena in foreign markets. Excess fabric produced will be utilized in home furnishing.

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