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Textile segment sales soar 31% at Sintex in Q2FY’15 |
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The textile division of Gujarat based Sintex Industries witnessed sales soaring 31 percent year-on-year in the second fiscal quarter ending September 30, 2014.
Thanks to healthy volume growth, revenue from the textile segment at Sintex surged from Rs 131.2 crore in the second fiscal quarter of 2013 to Rs 172.57 crore in the reporting quarter, up a massive 31 percent.
“Profit before interest and tax (PBIT) at the textile division, zoomed 76.4 percent to Rs 28.03 crore in the quarter under review from Rs 15.89 crore in the prior fiscal year quarter,” Sintex said in a BSE filing.
Capital employed at the textile division, which mainly produces yarn and fabrics, too skyrocketed to Rs 2,239.2 crore in the second fiscal quarter of 2014 from Rs 1,316.37 crore in same quarter of previous fiscal year.
The hike in capex comes from Sintex setting up a greenfield spinning project in Pipavav, Gujarat, which will house 320,000 spindles.
An official at Sintex had earlier told fibre2fashion that Sintex will invest Rs 1,800 crore in the spinning project, which is expected to begin full commercial operations in fiscal 2016-17.
The new plant will produce high-end cotton yarn, 70 percent of which will be earmarked for exports, mainly to China and the rest will be sold in the domestic markets.
The official had said that the turnover from the new plant is expected to be in the range of Rs 1,600 to 1,800 crore.
The project in Pipavav is expected to incur lower logistics cost related to sourcing cotton and exports since it is located in the main cotton hub of Gujarat and just 20 kms away from Pipavav port.
Meanwhile, in the second fiscal quarter of 2014, Sintex Industries reported a turnover of Rs 1,681, a hike of 23 percent, from a year earlier quarter, where it stood at Rs 1,365 crore.
Operating profit jumped 35.8 percent, from a year earlier to Rs 288 crore, while margin expanded by 160 basis points to 17.1 percent.
Net profit at Sintex grew a robust 46.8 percent year-on-year to Rs 107 crore in the reporting quarter, up from Rs 72.9 crore in same quarter of last fiscal year.
Source : fibre2fashion.com
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