Quarter ended March’08

The company saw an increase of 26% in Net Sales for the quarter ended Mar ‘08 at Rs 724.79 crore. Exports for the quarter increased by 50% to Rs 385.45 crore as compared to Rs 256.39 crore in the corresponding quarter of the previous year. The operating profits saw 37% rise to Rs 180.35 crore, on the back of 190 bps expansion in OPM at 24.9%. Among cost heads, the material consumption decreased drastically by 875 basis points (as % of sales net of stock adjustments) to 48.6%. Employee costs increased marginally by 10 basis points to 3.0%, while other expenditure zoomed by 490 basis points to 21.5%. The cushion of the decrease in material consumption lifted the OPM.

The Other income decreased by 96% to Rs 0.08 crore against Rs 1.91 crore in the corresponding quarter and thus PBIDT rose by 35% only to Rs 180.43 crore. Further interest and depreciation grew by 36% to Rs 36.45 crore and 29% to Rs 45.69 crore respectively. PBT grew by 37% to Rs 98.29 crore. The forex loss in the form EO of Rs 10.97 crore as against a gain of Rs 33.43 crore caused PBT after EO to fell by 17% to Rs 87.32 crore. The decrease in Current tax by 16% to Rs 9.89 crore, increase in deferred tax by 62% to Rs 23.17 crore and fringe benefit tax by 62% to Rs 0.52 crore respectively, steered PAT to stand 32% lower at Rs 53.74 crore.

Year ended Mar ‘07

The topline showed a lucrative dress up with the growth in of 18% to Rs 2159.25 crore. It’s gratifying to note that export sales zoomed by 60% to Rs1025.87 crore as against Rs 641.71 crore in spite of the present market conditions. The increase in OPM by 200 bps to 24.3%, and increase OP by 29% to Rs 525.30 crore was cushioned by fall in consumption of material by 400 bps to 54.7% of sales net of stock adjustments. How ever, Employee cost rose by 85 bps to 3.4% and other expenditure increased by 60 bps to 17.8%. With increase in other income by 19% to Rs 4.61 crore, PBIDT stood 29% high to Rs 529.91 crore. Both, the interest and the depreciation costs increased by 36% and 31% to Rs 121.27 crore and 161.25 crore respectively, thus restricting PBT to grow by 24% only to Rs 294.37 crore. The increase in the EO income in the form of forex gains by 41% to Rs 46.98 crore lifted PBT after EO by 27% to Rs 294.37 crore. The effective tax rate of 31.9% made PAT to stand 22% higher at Rs 200.52 crore. The effective tax rate also includes mat credit which was nil in this year against the income of Rs 1.11 crore in the corresponding previous period.

• Increase in equity share capital and premium have been on account of conversion of 328 FCCBs, translating to an increase of 11.386 million equity shares
• As on 31 Mar 2008, there are 475 FCCBs outstanding (each of USD 50,000), aggregating USD 23.75 million. The conversion price for FCCBs is Rs.71.5875
• The texturising plant affected by fire on 16 August 2007 stands restored with 55 machines out of the 63 machines at the site being fully operational. The balance machines are expected to commence production by end April 2008. The company has received an interim relief of Rs. 100 crore towards loss of assets and Rs. 10 crore towards loss of profit till date. The full settlement of the claim is expected by June 2008.
• On 26 Feb 2008, the Executive Committee of the Company’s Board of Directors authorised issue of share warrants, at a premium of Rs. 92 per share, to the promoters of the Company, as per details given below:
• 98 lakh warrants: to be converted on or before 31 Mar 2009
• 100 lakh warrants: to be converted on or before 31 Jul 2009
• The promoters of the Company have already put in 100% of the application money against the first tranche and 10% of application money against the second tranche.
• The first tranche of warrants have been converted into equity w.e.f. 28th April 2008
• The promoters share holding increased from 29.24% to 32.19% by the quarter ended Mar 08.
• The scrip is currently quoting at a price of Rs 68.75 as on 29^th April 08.