Suryalakshmi in expansion mode, Puts up impressive show

Suryalakshmi Cotton Mills Limited a major player in Denim & Yarn Industry head quartered at Hyderabad has a 40 Million meters Denim plant at Ramtek and 50,000 spindles Unit in A.P.

Suryalakshmi’s Net Revenue has increased 4% when compared with the last quarter of current financial year, from Rs 129.22 crores for the quarter ended June 30, 2010 to Rs 134.50 crores for the quarter ended September 30, 2010. Net Revenue has increased by 28% when compared with corresponding quarter of the previous year, from Rs104.78 crores for the quarter ended September 30, 2009 to Rs. 134.50 crores for the quarter ended September 30, 2010.

Commenting on the results, Paritosh Agarwal, Managing Director said, "We have managed to post good figures in this quarter. With Suryalakshmi’s growth plans & setting up of a new Ultra Modern Spinning Unit, the future looks bright. We thank our investors for the faith in our company."

Turning out an impressive show for the quarter ended September, 2010 the Company has reported a PAT of Rs. 8.47 Cores on a turnover of Rs. 132 Crores showing an EPS of Rs.11.8 Crores for the 1st half.

Highlights
Quarter ended 30.09.2010 (Rs. Lac.) Quarter ended 30.09.2009 (Rs. Lac.)
Sales 13237 10313
Profit after tax 847.84 28.75
Earning Per Share 6.34 0.22

The turnover has gone up by 28% whereas the EBIDTA has gone up by 85% over the corresponding quarter in the previous year. The EPS at Rs.6.34 for the quarter is up from Rs. 0.22 from the same quarter in the last year. The results from both the segments viz., Spinning & Denim have shown significant rise and the Company expects to do better in the future.

To take further advantage of the buoyant conditions in the Textile Industry the Company is expanding its Spinning capacity by setting up a new Ultra Modem Spinning Unit of 50,000 spindles in A.P. at a cost of Rs. 165 Crores. The land has been identified and orders have already been placed for machinery for 1st Phase of the expansion, i.e, of 25,000 spindles. The plant is expected to be commissioned by March,2012.
The performance for 2012-’13 will reflect the results of both these expansions.

About Suryalakshmi Cotton Mills Ltd
Suryalakshmi, one of the major players in the textile industry in South has modern spinning units at Amanagallu in Mahboobnagar District in Andhra Pradesh and a 40 million meter denim plant at Ramtek near Nagpur, Maharashtra. The company’s subsidiary Suryakiran International Ltd, located in the outskirts of Hyderabad, is into the manufacture and export of denim garments. Suryalakshmi’s large transnational network backed by a strong marketing presence ensures quality products to its domestic and international clients.