Highlights of the call are:

• The company has reported strong growth in the total income from operations at Rs 2422.75 crore in the quarter under review. While the operating margins improved to 30.9%, up 310 bps huge forex loss of Rs 172.96 crore has impacted profitability. Net Profit was down 49% to Rs 30.07 crore in the quarter under review. The company noted that the robust margins witnessed in the quarter would normalize going forward.

• The Forex loss was mainly on the back of forwards, swaps and reinstatement of loans. However, major impact was on the back of forwards that the company has placed last year.

• Domestic sales grew by robust 57% to Rs 1586.11 crore driven by the 93% jump in the revenues from Apparel woven fabric business at Rs 885.74 crore and 30% increase in the revenues from polyester yarn business at Rs 626.58 crore. On the other hand, exports revenue grew 34% to Rs 836.64 crore, thanks to depreciation of rupee which weighted 20% of the growth in exports. Of the exports, company has witnessed 54% increase in the revenues from home textiles at Rs 354.75 crore and 53% jump in the polyester yarn revenues at Rs 247 crore.

• The management has noted that the demand for polyester from export markets is healthy and is strong especially for Texturized yarn.

• The cotton inventory position at end of June 12 would be around 4 months.

• The capacity expansion of adding 3600 spindles and 6800 tons of knits is under process. The spindles expansion is to meet its internal requirements of yarn. On the polyester front, the company is converting 1.34 lakh tons of POY/Chips capacity to three different finished products as follows: 40000 MT on DTY, 24000 of Cationic yarn and 70000 MT capacity of PSF. Resultantly, the POY/Chips capacity would decline to1.66 lakh MT against 3 lakh MT before. The PSF capacity is expected to commence by end of August 12.

• On the real estate front, the company has sold 8 out of 20 floors in Tower B of Peninsula Business Park, Lower Parel. The company has received token consideration and LOI's have been executed. Sale deeds are expected to be signed soon against full consideration as per LOI. On the other hand, the company has sold 3 out of 8 floors of Ashford centre. Token considerations have been received and the sale deeds are to be executed against full consideration. Till date Rs 600 crore of transaction has been tied up and Rs 150 crore advances were taken.

• Debt position at end of June 12 was Rs 12900 crore. The company intends to sell its real estate assets (Rs 2500 crore in 2 years) and reduce the debt position. Apart from debt, it is also focusing on managing working capital efficiently and also rationalizing the capacities in the processing front which also will aid improvement in margins.

• The retail venture H&A stores has been reporting losses and the company plans to shut down 45 EBO's in Q2FY13. H&A stores have basically 2 formats (a) EBO's (Count 190) and (b) Shop in Shop (Count 100) covering retail space of 2.3 lakh sqft. While the shop in shop stores are able to generate breakeven EBIT, the EBO's are reporting losses. Going forward, the company is keeping vigil on this business and may unfold the retail stores if the business continues to report losses.

• The company is also planning to exit UK retail business - "Store Twenty One". It has 221 stores at end of CY 2011.