The company operates in two segments: cordage division and geosynthetic. The cordage division manufactures high-end ropes and nets for mechanized and industrial fishing vessels of 100-horse power (HP)-15,000 HP for industrial applications and fabricated products.

Other income during the quarter increased by a whooping 457% to Rs 61 lakh during the quarter. The net profit for the quarter increased by 7% to Rs 6.90 crore.

Revenue for the nine-month period ended December 2007 increased by 20% to Rs 290.10 crore and the net profit (PAT) during this period increased by 16% to Rs 17.98 crore as compared to the same period last year.

Performance for the quarter ended December 2007

Top-line for the quarter ended December posted a growth of 9% to Rs 97.13 crore on a year-on-year basis. The OPM margin during the quarter increased by 100 bps at 13.7% as a result there was significant improvement in operating profit during the quarter. The raw material cost during the quarter was Rs 41.97 crore which was 41.3% of adjusted sales. The employee cost was Rs 11.32 crore and the expense on traded goods was Rs 3.4 crore which was 4.1% of adjusted sales as compared to 10.7% during the same period last year. The total operating cost was Rs 83.9 crore which was 82% of adjusted sales as compared to 86% during the same period last year. Other income during the period increased by a whooping 457% to Rs 61 lakh. The interest cost and the depreciation allowance during the quarter increased by 79% and 8% to Rs 3.64 crore and Rs 2.46 crore as compared to the same period last year. As a result the profit before tax (PBT) increased by 10% to Rs 7.79 crore. Effective tax rate during the quarter was 11% as compared to 9% during the corresponding previous year quarter. Hence the net profit (PAT) increased by 7% to Rs 6.90 crore during the quarter ended December 2007 as compared to the same period last year.

Performance for the nine-month period ended December 2007

The company was able to post a revenue growth of 20% to Rs 290.10 crore during the nine-month period ended December as compared to the same period last year. The OPM margin during this improved by more than 100 bps. The total operating cost as a percentage of net adjusted sales was 85% as compared to 87% during the same period last year. The total operating cost during the nine month period ended December 2007 was Rs 252.58 crore. The operating profit as a result increased by 32% to Rs 37.52 crore as compared to the same period last year.

Other income during the period fell by 28% to Rs 87 lakh. The interest cost significantly increased by 68% to Rs 10.60 crore and the depreciation allowance increased by 14% to Rs 7.82 crore as compared to the same period last year. As a result the profit before tax (PBT) increased by 21% to Rs 19.97 crore during the nine-month period ended December 2007 as compared to the same period last year. Total tax during the period was Rs 1.99 crore as compared to Rs 92 lakh during the same period last year. Hence the net profit after tax (PAT) increased by 16% to Rs 17.98 crore.

Synthetic Cordage

Synthetic Cordage business contributed 74% of the total revenue of the company during the quarter ended December 2007. Of the total cordage sales the fishery segment constitutes a major portion of the sales. Revenue from the division increased by 14% to Rs 73.37 crore during the quarter ended December 2007 as compared to the same period last year. The profit from the division during the quarter increased by 21% to Rs 11.42 crore on a year-on-year basis. Synthetic cordage division is the major revenue driver for the company.

The company is currently banking on Geosynthetic segment for future growth. Geosynthetic (planar, polymeric and permeable/impermeable) material is used in those engineering applications that come in contact with soil/rock and /any other geotechnical material.

The revenue from the division for the nine-month period ended December 2007 increased by 20% to Rs 224.66 crore and the profit from the division during the period increased by 34% to Rs 32.48 crore as compared to the same period last year.

Fibre & Industrial Products & Projects

Fibre & Industrial products contributed 26% of the total revenue of the company during the quarter ended December 2007. This segment however posted negative growth of 12% to Rs 25.12 crore as compared to the same period last year. The profit from the division fell by 10% to Rs 2.64 crore.

Revenue for the nine month period however increased by 23% to Rs 75.56 crore whereas the profit during this period increased by 7% to Rs 7.35 crore.

The promoters currently hold around 43.47% of the total equity.

The scrip is currently trading at Rs 165 on the BSE.