Sangam (India) Q2FY08 Net Sales up 38 per cent at Rs 189 crore
Released on: November 2, 2007, 3:09 am
Press Release Author: YnFx.com
Industry: Apparel & Fashion
Press Release Summary: Sangam (India) Q2FY08 Net Sales up 38 % at Rs. 189 crore
Press Release Body: Sangam (India) Ltd., one of the largest polyester-viscose dyed yarn manufacturers in India, today announced its un-audited results for the second quarter ended September 30, 2007.
Q2FY08 Performance Update
During the quarter, Net Sales / Income from operations increased by 37.74 per cent rise to Rs 188.77 crore for the second quarter ended September 30, 2007 as compared to Rs 137.05 crore in the corresponding quarter previous year.
The Exports zoomed by 47% in $ term to USD 13.69 Million (Q2FY08) from USD 9.31 Million (Q2FY07). Export in first half is also grown by 54 % in $ term.
The company witnessed pressure on margin due to sharp appreciation of rupee and increase in raw material price. Company has registered moderate growth in operating Profits to 26.89 crore as against Rs. 24.24 crore in Q2FY07 however PBIDT margins dipped by 3.46 percent.
The company's net profit during the quarter ending September 30, 2007 was affected due to rupee appreciation and coupled with rising interest rates and power & fuel costs. Also, higher depreciation costs increased on account of the on-going expansion plans affected the company's performance. Net Profit for the quarter ended September 30, 2007 stood at Rs. 5.67crore resulting in an EPS (Basic & Diluted) of Rs. 1.44 as against the Net Profit of Rs. 10.21 crore and EPS (Basic & Diluted) of Rs. 2.77 for the corresponding quarter last year. However, the Cash EPS amounted to Rs. 4.60 in comparison to Rs. 5.29 during the corresponding quarter last year.
Update on Expansion Plan
The company is executing Expansion & Diversification Project having an aggregate outlay of Rs. 707 crores in which installation of 1,47,552 Spindles, 140 Weaving Machines, 12 Knitting Machines, Captive Power Plant of 21 MW and a Modern Process House have been envisaged.
The company has commissioned 113088 Spindles, 130 Weaving Machines, 12 Knitting Machines, the full impact of which will be reflected from Q3 onwards in current year. During the quarter, the company has installed 26176 spindles and 20 weaving machines which will start commercial production from Q3FY08. The company expects to add another 12000 spindles by Q3FY08 and 20000 by March 2008. The work of installation of remaining part of the project is progressing as per schedule. The installation of Captive Thermal Power Plant is nearing completion.
Outlook
Mr R. P. Soni, Chairman, said, Mr R. P. Soni, Chairman, said, "Company is able to sustain the revenue growth in the most difficult and challenging scenario and is also able to pass on the increase in raw material price and also partially increase the price in international market. The demand graph of PV product is very good. We are positive on the improvement in margins once we see the stability in rupee price."
Order Book Position
The company's products have been accepted swiftly in domestic & global markets. The company has strong order book position of Rs 140 crore out of which Rs 60crore from overseas markets. About Sangam India Limited (Reuters Code: SANG.BO; BLOOMBERG: SNGM@IN; BSE Scrip Code: 514234) Promoted by first-generation entrepreneurs R P Soni and S N Modani, Sangam (India) is one of the largest manufacturers of polyester dyed yarn in the country. At present, Sangam India has 100,320 spindles of polyester-viscose dyed yarn and 31200 spindle on Cotton Yarn installed in Bhilwara along with 237 weaving machines and a 10 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, BSL, Skumars, Reid & Taylor, Siyaram and Grasim. Its fabric is marketed through a network of 100 dealers and 1000 retailers. Additional information is available at the Company\'s website at www.sangamgroup.com
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