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Suryalakshmi Cotton Mills Q2 profit up 18 per cent

Suryalakshmi Cotton, the third largest denim fabric producer in India, has reported a 3 per cent dip in its Q2 revenues. The company recorded total revenue of Rs 180 crores in Q2 2015-16, down three per cent compared to the same quarter of previous year. However, profit before tax increased by a healthy 18 per cent and stood at Rs 9.50 crores, as against Rs 8.03 crores from the year-ago period. The company earned profit after tax and EPS of Rs 6.97 crores and Rs 4.18 respectively for the quarter as compared to Rs 5.85 crores and Rs 3.51 in Q2 of FY 2014-15, a robust growth of 19 per cent.

Growth is primarily attributed to the company’s strategic focus on product innovation, especially the value added denim range. They launched over 100 new denim fabric variants with a combination of new dyeing and fibre technologies. The new offerings received a positive response from existing as well as new customers with orders increasing. The company’s major capacity expansion of 26,000 spindles at Amravati in Maharashtra was completed during the quarter and production of value-added fancy yarns commenced.

The Amravati is equipped to meet the company’s fancy yarn requirements and 40 per cent of its production will be for captive use at the denim fabric plant in Nagpur. An annual revenue of Rs 150 crores plus is expected from this plant alone. Further, the unit also expands the company’s scope to invest in R&D, enabling it to be in sync with the latest global trends in denim and to cater to international and domestic fashion demands effectively. The balance 60 per cent production of these high-end yarns would be sold to global and domestic customers.