Sangam (India), one of the leading players in Polyester Viscose (PV) dyed yarn segment in India, announced its Q2 FY13 results.
Online PR News – 02-November-2012 – November2, 2012 Mumbai/ Maharashtra – Sangam (India), one of the leading players in Polyester Viscose (PV) dyed yarn segment in India, posted a 200 per cent rise in net profit at Rs 18.09 crore for the second quarter ended September 30, 2012 (Q2FY13) as compared to Rs 6.03 crore in the corresponding quarter previous year Q2FY12.
Net sales during this period grew by 2.2% to Rs 384.06 crore as compared to Rs 375.64 crore in the corresponding previous quarter. Slower growth in turnover is attributed to completion of road toll collection projects. Further, a decline in raw material prices has improved operating profit by 44.5% to Rs 60.83 crore as compared to Q2FY12. Lower interest charges have led to an improved the profit after tax.
First Half Performance
The company has posted an 11.5 percent rise in net sales at Rs. 795.15 crore for the half year ended September 30, 2012 (H1FY13) as compared to Rs. 713.20 crore in the corresponding period previous year (H1FY12).
Higher realisation coupled with volume growth in the dye yarn segment and denim segment contributed to a higher turnover. The EBIDTA margin improved by 280 bps (basis points) y-o-y to 14.1 percent. The prices of major raw materials - polyester staple fibre and viscose staple fibre - declined by ~1.5% and ~1% respectively, while cotton yarn prices increased by 6-7% giving a boost to PV yarn realisations. This has helped in improving the operating profit
Net profit during this period increased by 116.5% growth in net profit at Rs 27.86 crore compared to Rs. 12.87 crore in the corresponding half year period ended September 30, 2011. The company reported a earning per share of Rs. 7.07 compared to Rs. 3.26 in the half year ended September 30, 2012.
The company has completed its Rs. 180 crore expansion plan by installing additional 16 ml capacity for Denim fabrics, 1824 rotors for open ended spinning along with of 3,000 mtpa knitting capacity and 7200 mtpa texturising yarn capacity at its existing facilities at Bhilwara, Rajasthan. Further, it has also modernised its processing division by replacing new processing machines. This expansion project worth of Rs. 180 crore has been financed through a mix of term loan and internal accruals.
Mr R P Soni, Chairman, Sangam (India) said, “Better realisations, higher volumes and value-added products have transformed into a better performance for this quarter and we expect this growth to continue. Globally, Indian apparel sector is affected due to the slowdown in western markets and to reduce dependence on them, we have explore new market by participating in trade exhibitions and holding road shows in new markets like South Africa and Latin American market & keeping the growth momentum .”