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The Textile Magazine
FEBRUARY 2012
Vardhman
expects industry
to stabilise from now on
corporate news
V
ardhman Textiles has
reported
consolidated
revenues of Rs. 3,598
crores for April-December 2011-
12 against Rs. 3,300 crores for the
previous year, an increase of 9 per
cent, and the net turnover up to
Rs. 2,979 crores from Rs. 2,711
crores in same period last year.
For the first nine months, there is
an improvement in overall yarn
sales of about 20 per cent. Yarn
sale has gone up to Rs. 2,570
crores (Rs. 2,149 crores). Fabric
business has expanded another 19
per cent to Rs. 916 crores from Rs.
768 crores.
The total PBDIT of the company
standalone is Rs. 180 crores for
’11 was 563 lakh metres against
565 lakh metres for the same period
last year. Sales were 564 lakh me-
tres (536 lakh metres).
Mr. Sachit Jain, Executive Di-
rector of Vardhman Textiles, says:
“We have gone through a lot of
pain in the first quarter of this year
and we had to take huge losses on
cotton which led to a loss in the first
quarter. Second quarter, we had
recovered but not fully, and third
quarter we have done better. Our
belief is that the worst is behind us.
Overall, in the global situation, still
uncertainty remains because of Eu-
rope as well as U.S. Till that gets
sorted out we cannot say we are in
a bullish phase, but really the tough
phase is over. Our belief is the cur-
rent situation is likely to remain for
the next few quarters, and a lot de-
pends on the global economic situ-
ation”.
On expansion of capacity, Vardh-
man had put two projects on hold:
200 looms in weaving as well as
one spinning plant of 56,000 spin-
dles. Excluding these two projects
the company’s capex plan in 2011-
12 is approximately Rs. 400 crores
and for the next year Rs. 350 crores.
Mr. Sachit Jain expects the fourth
quarter to be slightly better than the
third and business to be more stable
from now on.
w
the December quarter as against
Rs. 276 crores for the same quarter
last year.
For the first nine months of the
current year, yarn production has
increased to 1,00,298 MT from
97,068 MT. Yarn sales have grown
to 1,12,589 MT for the YTD De-
cember 2011 as against 1,08,891
for December 2010, an increase of
3.4 per cent in the total sales for the
YTD figure.
Grey fabric production was 804
lakh metres for YTD December ‘11
against 860 lakh metres for YTD
December ‘10. Sales are 817 lakh
metres (857 lakh metres).
Process fabric, the YTD figures
the production for YTD December
Mr. Sachit Jain,
Executive Director, Vardhman Textiles