The Hindu Business Line : Precot Mills Q2 net rises to Rs 5.68 cr

REDUCTION in raw material cost, coupled with a fall in interest payment on borrowings, has aided Precot Mills Ltd record a manifold rise in its profit before tax (PBT) and the net profit for the quarter ended September 30.

Its PBT for the quarter zoomed to Rs 8.76 crore from Rs 1.53 crore for the same period in 2004; its net profit rose to Rs 5.68 crore from Rs 65 lakh as on September 30, 2004.

Its net sales during the quarter under review were up 4 per cent to Rs 60.76 crore, compared with Rs 58.48 crore last year. But its raw material cost remained lower at Rs 19.60 crore (Rs 30.67 crore) and its interest payment fell to Rs 32 lakh (Rs 1.45 crore). This, according to the company, is due to reduced long-term and working capital borrowings.

The company's cash earning per share was around Rs 19 on 54.5 lakh equity share of face-value Rs 10 (Rs 9).

The Precot board, which took on record the audited financial results of the quarter at its meeting today, approved its Rs 93-crore capacity expansion plans.

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