Despite increase in depreciation and tax provision, the spurt in other income by 124% to Rs 17.40 crore saves the bottomline with an increase of 39% to Rs 49.26 crore.

Performance for the quarter ended Jun’07

Net sales for the quarter ended Jun’07 rose 27% to Rs 483.23 crore. The Operating profit margin for the quarter increased by 70 basis points owing to decline in staff and other cost. Spurred by robust revenue and healthy margin, the operating profit increased by 33% to Rs 80.10 crore. Raw material costs as a % to net sales (net of stock adjustment) increased by 70 basis points to 59.2% while, the other expenditure and staff cost declined by 50 basis points each to 7.4% and 17.0% respectively.

Other income, which comprises of export subsidies, dividend income and interest on deposits zoomed by 124% to Rs 17.40 crore. Interest cost stood nil while, depreciation increased by 74% to Rs 21.01 crore for the period. This restricted the PBT to increase by 37% to Rs 76.49 crore for the quarter ended Jun’07. After accounting for 33% increase in tax provision at Rs 27.23 crore, the Net profit increased by 39% to Rs 49.26 crore compared to Rs 35.52 crore in the corresponding previous quarter.

Performance for the year ended Mar’07

For the year ended Mar’07, the net sales rose 42% to Rs 1853.58 crore. The OPM declined marginally by 10 bps to 15.6%, leading the OP to increase by 41% to Rs 289.21 crore. Other income rose 107% to Rs 88.14 crore, while interest cost remained nil compared to outgo of Rs 3.45 crore. Depreciation increased by 23% to Rs 55.88 crore. Thus at PBT level profit was restricted by 64% to Rs 308.60 crore. Tax provision increased by 138% to Rs 102.40 crore. Subsequently, at net level profit increased only by 42% at Rs 206.20 crore.

Segment Results:

Textile Division: The textile division accounted for 92% and 96% of the company's net sales and profit before interest and tax (PBIT). The net sales increased by 32% to Rs 452.61 crore for the quarter ended Jun’07 while, the PBIT increased by 26% to Rs 65.49 crore for the same period. For the year ended Mar’07 the Net sales increased by 48% to Rs 1743.41 crore and the PBIT increased by 68% to Rs 297.31 crore.

Machine Tool & Foundry Divisions: The segment revenue for the quarter ended Jun’07 declined by 3% to Rs 41.41 crore however, the segment results increased by 20% to Rs 2.61 crore. For the year ended Mar’07 the segment revenue increased by 21% to Rs 211.37 crore and at PBIT level it increased by 6% to Rs 9.19 crore.

The scrip presently trades at Rs 2723.