Sutlej Textiles Q1 net up 365% on sales growth

Our Bureau    (The Economic Times, Kolkata, Tuesday 25 July, 2006 )

KOLKATA

SUTLEJ Textiles & Industries Ltd. reported a 365.14% rise in net profit at Rs.11.21 crore for the First quarter (Q1) ended June 30, 2006 , compared to a Rs.2.41 crore net in the corresponding period previous year.  The higher profit follows a 26.74% growth in Sutlej ’s April-June sales revenue at Rs.169.42 crore (Rs.133.67 crore).

 Earnings before interest, depreciation and tax at Rs.27.2 crore for the quarter ended under review was up by 93.87% over Rs.14.03 crore in the corresponding period last year.  While cash profit for the said Q1 stood at Rs.22.95 crore (Rs.11.26 crore), profit before tax for the period ended June 30, 2006, rose by 347.97% to Rs.13.26 crore compared to Rs.2.96 crore during the corresponding period last year.

“Post restructuring, the company has been focusing on value addition along with sustained growth in both the topline as well as bottomline.  Our strategy to concentrate on efficiencies is paying off “CS Nopany, vice-chairman, Sutlej Textiles & Industries Ltd., said in a statement issued after the board meeting held in New Delhi .  

   The Company is well positioned to capitalize on the opportunities in the textiles segment in India and abroad.  It is on an expansion-cum-modernisation spree. The exercise  includes greenfield and brownfield  ventures and entails an investment of Rs.307 crore. The proposed projects includes setting up of a 1.8 million metres per annum plant for home furnishing materials and a unit for manufacture of 1.5 milion pieces of trousers per annum at Bhilad in Gujarat.

   This apart, the company is also expanding the company’s Kathua unit in Jammu and is setting up captive thermal power plants at Bhawanimandi in Rajasthan and Bhilad in Gujarat .  The projects will be financed by internal accruals and financial assistance from banks under the technology upgradation fund scheme.

   A KK Birla group company, Sutlej Textiles and Industries has a spinning capacity of 1.63 lakhs spindles in its two spinning units at Bhawanimandi and Kathua.  It produces 4.8 million metres of fabrics per annum and processes 18 million metres per annum at Bhilad.