Quarterly Results

The company saw an increase of 11% in Net Sales for the quarter ended Sep 2007 at Rs 464.78 crore. Though exports for the quarter increased by 56.6% to Rs 201.40 crore, it could not be translated to an overall growth in sales. This could be attributed to the loss incurred by the company on account of fire at the company’s texturising plant at Silvassa. The estimated loss of the fixed assets based on written down values is around Rs.158 crore and loss of inventory is valued at around Rs.42 crore.

The operating profits saw 12% rise to Rs 108.62 crore, on the back of a marginal 20 bps expansion in OPM at 23.4%. Among cost heads, the material consumption decreased substantially by 840 basis points (as a % of sales net of stock adjustments) to 48.1%. Staff costs (as % of sales) and other expenditure increased by 160 basis points and 220 bps to 4.5% 20.3%.

Other Income was Rs 13.87 crore as against a negative figure of Rs 1.55 crore in the corresponding previous quarter. Interest and depreciation costs increased by 33% and 30% to Rs 28.27 crore and 36.37 crore, respectively, resulting in a PBT of Rs 57.85 crore (up by 26%). With the increase in tax liability by 12% to Rs 14.88 crore, Net profit increased by 14% to Rs 42.97 crore.

Other developments in the Company

With regard to the loss due to fire, the company’s assets are fully insured on a ‘replacement basis’ and there is also a loss of profit policy in place. The insurance claim is under process and the company is confident of having the claim settled in full. In the meantime the insurance company has paid Rs.75 crores as an interim measure. As on date the affected factory building stands restored to the extent of the ground floor and 5 machines have been received which are being commissioned. The company also, in a separate building, has commissioned 16 machines.

The company has received the final approval of Government of India for setting up a Textile SEZ in Silvassa through its wholly owned subsidiary Alok Infrastructure Pvt. Ltd.

The progress on the company’s on going expansions under Phase III and Phase IV are progressing satisfactorily and are likely to be completed as per schedule.

Half yearly Results

For the half-year ended Sept 2007, the net sales recorded increase of 14% to Rs 883.68 crore. OPM improved from 22.9% to 23.8%. As a result OP jumped 18% to Rs 210.18 crore. Other income was positive at Rs 13.87 crore as against a negative figure of Rs 1.96 crore.

The net interest costs stood at Rs 55.28 crore as against Rs 38.34 crore in the corresponding half year. Depreciation increased 37% to Rs 72.25 crore. PBT recorded 61% increase to Rs 136.26 crore. Taxation increased by 54% to Rs 38.41 crore. After this the net profit increased by 7% to Rs 97.85 crore.

The scrip presently trades at Rs 67.25 on the BSE.