Sangam (India), the largest polyester-viscose dyed yarn manufacturer in India, has achieved a 246.15 per cent rise in net profit at Rs 7.65 crore for the quarter-ended June 30, 2010 compared to Rs 2.21 crore in the corresponding quarter previous year. EBDITA during the quarter rose by 22.22 per cent to Rs 38.38 crore compared to Rs 31.40 crore in the corresponding quarter-ended June 2009.
Meanwhile, net sales grew by 30.35 per cent to Rs 255.10 crore for the quarter-ended June 2010 compared to Rs 195.70 crore in the corresponding quarter last year. The Earning Per Share (fully diluted) stood at Rs 1.94 for the quarter ended June 30, 2010.
Expansion Plan The company is presently implementing an Rs35 crore expansion plan to double its denim production from 8.00 million meter to 16 million meter by setting up additional line. As part of its strategy, Sangam (India) plans manufacture various value-added denim products; this will start generating revenue by dec.2010.
In FY09, the company had completed its Rs 650 crore major expansion plan by adding 1.29 lakh spindles, 130 weaving machines, setting up of 21MW power plant and modernising of process house.
Management Comment Commenting on the result R.P.Soni Chairman of the company said, “The demand for polyester-viscose (PV) dyed yarn is picking up on account of rising domestic demand. In volumes terms, company's dyed PV yarn sales (in volume terms) in Q1FY11 moved up 16 per cent year-on-year basis at 11670 MT, while dyed PV yarn realisations increased by 25% per cent to Rs 164 per kg .” He also added, “The company has witnessed a significant improvement in its order-book position. As on June 30, 2010, company's total order book position stood at Rs 170 crore, including export order of Rs 54 crore.
Promoted by first-generation entrepreneurs Mr R P Soni and Mr S N Modani, Sangam (India) is one of the largest manufacturers of polyester dyed yarn in the country. At present, Sangam India has 162720 spindles of polyester-viscose dyed yarn and 31,200 spindles for cotton yarn installed in Bhilwara along with 257 weaving machines and a 31 MW thermal power plant.
The company also has strong presence in the Indian synthetic blended fabric segment with brands like Anmol and Sangam. The company has an established client base, like Reliance, Reid & Taylor, Siyaram and Grasim. Its fabric is marketed through a network of 200 dealers and 1000 retailers.
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