GHCL Qtr net sales up 42%

02 Aug '07

5 min read

GHCL with annual revenue of close to $700 million and a team of more than 7000 people globally is a multi product progressive organization, part of the eminent and reputed Sanjay Dalmia Group based out of India.

Highlights-Financial:
• Net Sales / Income from Operations for the quarter at Rs.235.50 Crores as against Rs. 165.70 Crores reported in the June 06-07 is higher by 42%.
• Textiles division during the Q1 FY08 accounts for 36% (Rs.86.96 crores) of the total business (18% June 06-07) with a growth of 184% YoY with the stability of the Processing operations at Vapi.
• Profit After Tax for the quarter is marginally higher at Rs.31.55 Crores as against Rs.31.05 Crores reported in June 06-07.

Due to higher interest costs which has gone up from Rs. 4.0 crores to approx. Rs.11.93 Crores on account of the borrowings to finance the expansion projects of the company. This expansion project of Soda Ash would start yielding operating profits in subsequent period.
• EBITDA for the Company for the quarter at Rs.67.31 Crores as against Rs.64.85 Crores reported in June 06-07, is higher by 4% approximately. The EBITDA margins of the Chemical business (Soda Ash) and the Home Textiles Business are at different platforms.

The Chemical Segment has higher EBITDA margins compared to the Home Textiles segment, in line with the respective industry margins. Changes in the overall EBITDA margins in this quarter are due to the higher Home Textiles turnover of 36% compared to 18% in the previous year corresponding quarter.

• The EBIT for the Home Textiles segment remained marginally lower at Rs.1.4 Crores as against Rs.1.7 Crores. This is in spite of the Home Textiles turnover rising 184% YOY from Rs.30.58 Crores to Rs.86.96 Crores. The industry is facing a challenging environment on the back of appreciating rupee.
• The Board of Directors has recommended a dividend @ 27% (i.e. Rs. 2.70 per Equity Share of Rs. 10/- each) (Previous year 24% i.e. Rs. 2.40 per Equity Share of Rs. 10/- each) for the 15 Months period ended on 31st March 2007

HOME TEXTILES:
• During the Quarter GHCL subsidiary - HW Baker Linen bagged a $100 Million Order from Starwoods Hotels & Resorts Worldwide Inc for a variety of home textiles products in the US market.

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