The Hindu Business Line : Kitex Garments H1 net up

Kitex Garments has recorded a net profit of Rs 5.32 crore on a turnover of Rs 84 crore during the first six months of the current fiscal. The company had notched up a turnover of Rs 107 crore and a net profit of Rs 4.4 crore for the financial year 2005-06, Kitex Garments said in a press release issued here.

Compared to the last fiscal, Kitex Garments was able to record a higher profit during the first six months itself due to the expansion and consolidation activities of the company. Without expanding on its shareholder capital of Rs 4.75 crore, Kitex Garments is in the process of undertaking Rs 40 crore expansion project, which should become operational in a couple of months' time, the company said.

With this capacity expansion, the production volumes are bound to increase, improve profit margins and drive export volumes. The company recorded a net profit of Rs 2.91 crore on a turnover of Rs 43.7 crore for the second quarter ending September 30. Gross profit had grown to Rs 5.62 crore and profit before tax was at Rs 3.88 crore.

After the earlier stock split, the company's shares which had closed at Rs 12.04 on Thursday, fell by 4.65 per cent to Rs 11.48 at Friday's close.

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Kitex Garments H1 net up