Alok Industries, fares well despite odds

Alok Industries Ltd. reported net sales of Rs. 2,595.38 crores for the quarter ended March 31, 2012, as compared to Rs. 2,195.87 crores in the corresponding period of the last fiscal, registering a growth of 18.19 per cent. Export sales for the quarter stood at Rs. 814.90 crores (Rs. 580.98 crores), registering a growth of 40.26 per cent. The operating EBIDTA for the quarter was at Rs. 737.44 crores (Rs. 575.90 crores). Net profit after tax stood at Rs. 283.50 crores (Rs. 159.59 crores), representing a growth of 77.73 per cent.

Net sales for the 12 months ended March 31, 2012, was at Rs. 8,900.86 crores, an increase of 39.33 per cent as compared to Rs. 6,388.44 crores in the corresponding period of the last fiscal. Export sales for the period stood at Rs. 3,029.56 crores (Rs. 2,217.25 crores), a growth of 36.64 per cent. The operating EBITDA for the year was at Rs. 2,624.75 crores (Rs. 1,879.30 crores), registering a growth of 39.67 per cent. Net profit after tax (after exceptional items) for the 12 months stood at Rs. 380.53 crores.

Commenting on the results, Mr. Dilip B. Jiwrajka, Managing Director, Alok Industries Ltd., said: “We are encouraged by the steady growth in sales and operating EBITDA. We will continue to take specific measures to position our company for long-term sustainability with focus on improving ROCE. The strategy is to optimise existing capacities and improve asset turnover by widening the product portfolio, including technical textiles, by selectively expanding capacities. We draw our strength from our strong customer base and our ability to satisfy their varied needs. We have started to come out of non-core businesses which will aid us in improving our financial strength. Having achieved complete integration, it would now be our endeavour to transform into the most innovative textile company in the world.”

Established in 1986, Alok Industries Ltd. is amongst the fastest growing vertically integrated textile solutions providers in India. A diversified manufacturer of world-class home textiles, apparel fabrics, garments and polyester yarns, Alok has capacities of 105 million metres of sheeting fabric and 13,400 tons of terry towels for its home textiles business, 186.00 million metres of apparel width woven fabrics, 18,200 tons per annum of knitted fabrics and 22 million pieces per annum of garments.

Alok has achieved complete integration and also has a strong presence in the polyester segment with a capacity of 1,20,000 tons per annum of polyester textured yarn, supplemented by 5,00,000 tons per annum of POY. It is planning capex of Rs. 300 to 500 crores for the current year.

Referring to exports, Mr. Jiwrajka said: “We feel that in the current year we should do much better than what we did last year, and some of our capacities that have come into place by the last quarter of 2011-12 are now being fully established. I’am confident that exports will grow much faster than last year”.

Alok has a blue chip international customer base comprising world-renowned retailers, importers and brands. The company exports to 98 countries worldwide with the US being one of the major markets.