The Hindu Business Line : Rajasthan Spinning Q1 net up 51 pc

Rajasthan Spinning and Weaving Mills has reported a net profit of Rs 5.38 crore for the quarter ended June 30, a 51.1 per cent rise compared to the corresponding quarter last year (Rs 3.56 crore).

During the quarter, the company's net revenues improved by 20.4 per cent to Rs 239.3 crore from Rs 198.83 crore. The yarn business significantly grew by 25 per cent to Rs 224.87 crore and the fabrics & garment business stood at Rs 22.31 crore.

Export performance was strong, as export revenue saw a substantial increase of 51 per cent to Rs 111.6 crore in the first quarter of 2006-07. Total exports stood at Rs 451 crore in the last financial year, which was 46 per cent of total revenues. This year the company is hoping to increase its exports by 27 per cent.

Basic EPS rose to Rs 2.32 from Rs 1.54.

In an official release, Mr Riju Jhunjhunwala, Joint Managing Director, Rajasthan Spinning and Weaving Mills, said, "We are pleased to report that FY2007 has commenced on a positive note. The yarn sector is witnessing better local and global demand trends which are expected to continue for the rest of FY2007."

The company has laid out its capex plans for the next three years (from FY2007 to FY2009); this includes phase II and phase III of modernisation and expansion announced earlier.

It expects to invest Rs 900 crore over the next three years in enhancing yarn capacities, establishing thermal power plant, setting up denim operations. and regular capex requirements.

Finances for the entire Rs 900-crore capex plan will be done through a combination of TUF loans and internal accruals.

Shares of the company fell by 1.14 per cent to close at Rs 95.15 on the BSE.

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