Suryalakshmi Cotton Mills Ltd., the country’s third largest denim fabric producer, has reported revenues of Rs. 180 crores for the second quarter of 2015-16, down by three per cent in comparison to the corresponding quarter of the previous year. 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 recorded in the second quarter of FY 2014-15, thereby registering a robust growth of 19 per cent.
Commenting on the results, Mr. Paritosh Agarwal, Managing Director, Suryalakshmi Cotton, said: “The achievement of enhanced profitable growth in the current quarter validates the company’s strategic focus on delivering innovative and value-added denim solutions to our customers. Over the last 6 months, we have launched over 100 new denim fabric variants with a combination of new dyeing and fiber technologies. The new offerings have received a very positive response from our existing as well as new customers and we have obtained additional orders from them. 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 has commenced. The yarns manufactured at this unit shall help us enhance our product portfolio, add to our revenues and increase our profitability.”
The Amravati unit will meet most of 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. These fancy yarns being a premium product, an annual revenue of Rs. 150 crores plus is expected from this plant alone. Further, this in-house unit expands the company’s scope to invest in R&D, enabling it to be in sync with the latest trends in the world of denim and to cater to international and domestic fashion demands more effectively. The balance 60 per cent production of these high-end yarns would be sold to global and domestic customers. The plant would also utilize power from the 25 mw captive unit, further adding to the company’s bottom line.
Over the last six months Suryalakshmi Cotton actively participated in industry and fashion trade fairs in India as well as overseas – Kingpins Show (New York), Denim Fair 2015 (Dhaka) and Iran Tex 2015 (Tehran). The company showcased its new Fall / Winter 2016 and Spring / Summer 2017 collections at these events, with excellent response from international customers.