Chandigarh- Ludhiana-based Vardhman Textiles, one of the leading textile companies in India, recorded highest-ever quarterly net profit of Rs 177.81 crore for the quarter ended September, 2013. The net profit registered an increase of 154 pert cent as compared to profits of the corresponding quarter last year that stood at Rs 69.95 crore.
The net profit increased by 23 per cent in comparison to immediately preceding quarter. The half yearly profits was Rs 322.31 crores. The net sales of the company were Rs 1,279.51 crore as compared to Rs 1,010.74 crore, showing an increase of about 27 per cent. The EBITDA on standalone basis is Rs 346.55 crore for the quarter showing a growth of 70.09 per cent over quarter ended September, 2012 (Rs 203.74 crore). The EBITDA margin is also up at 27.08 per cent during the quarter as against 20.16 per cent of the corresponding period and 24.91 per cent of the immediate previous period.
There has been a spurt in the margins over the previous quarter and the corresponding quarter of the last year essentially due to favourable conditions both in respect of availability of raw materials at a reasonable cost and the pull in the demand of yarn owing to the increase in export of yarn to China. The management feels that the increase in cotton prices this year, as compared to last year, and relative lull in demand as of now may not allow the margins to continue at this level.
On the expansion side, an additional 62,496 spindles, 960 rotors and 120 looms became operational at various manufacturing units of the group.