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Sangam net sales up 6.5pc

Posted on Jan 29, 03:50PM | IBNS

Sangam (India) Ltd., one of the leading textile companies, on Tuesday announced it has posted a robust growth in the third quarter ended December 31, 2012.

For the third quarter ended 31st December 2012, the company reported total sales of Rs 327.96 crore as compared to Rs 307.92 crore in the corresponding previous quarter.

EBIDTA for the quarter stood at Rs 51.30 crore as against Rs 31.10 crore in the corresponding period last year.

Higher realisations in textile business with expiry of toll business in infra-segment led to higher EBITDA during the quarter.

Operating margins improved from 10.03 percent to 15.57 percent on back change in product mix to value added fabrics in PV and fabrics. The October-December 2012 quarter witnessed a higher demand for yarn and fabrics with stable raw material prices.

During the quarter, interest charges declined from Rs 18.11 crore to Rs 16.72 crore and the company has reported Profit after Tax of Rs 11.07 crore as compared to a net loss of Rs 1.84 crore in Q3FY12.

The EPS for Q3FY13 stands at Rs 2.81 per share.

During the quarter, the sales of textile business grew by 29pc to Rs 327.96 crore as compared to Rs 253.92 crore in the corresponding previous quarter.

No revenues of the toll division accrued in Q3FY13 as compared to Rs 54 crore, on completion of road toll collection projects.

Operational Highlights

Textile revenue increase by 29pc on YOY basis

Operating Profit increase by 65 pc

Company posted a profit of Rs 11.07 crore against loss of Rs 1.84 crore

In the current financial year, the denim capacity has been doubled from 16 million meters to 32 million meters per annum.

For the nine-month period, company achieved sales of Rs 1123.11 crore, up 10pc and the textile business has grown by 18.5pc to Rs 1038.41 crore while toll revenue decline by 41 pc , operating margin has improve by 339 basis point to 14.87 pc and net profit for the period has jump by 253 pc to Rs 38.93 crore.

EPS for the nine-month period is at Rs 9.88.

Commenting on the quarter results, R. P. Soni, Chairman, Sangam (India) said, "The textile business has picked pace on favourable government policies to cotton price stabilisation and demand push for apparel sector.

"With the completion of the Denim expansion, the company has been able to capitalise by way of growth in the textile division. There are emerging opportunities for textile exporters which will enhance our growth in the sector near future."