The Hindu Business Line : Sutlej Textiles Q4 profit down 48%

New Delhi May 10 K K Birla Group company Sutlej Textiles and Industries Ltd reported a 47.68 per cent dip in net profit during the fourth quarter of 2006-07 to Rs 4.84 crore, from Rs 9.25 crore in the same quarter of the previous fiscal. The company attributed the dip in profits to the appreciating rupee and rising interest rates.

Net sales of the company was up 22.9 per cent to Rs 185.6 crore during the fourth quarter last fiscal, as compared to Rs 151.02 crore in the corresponding period of 2005-06.

Sutlej's profits for financial year 2006-07 grew 72.46 per cent to Rs 36.32 crore, as compared to Rs 21.06 crore during the previous fiscal. The company's sales for the last fiscal stood at Rs 714.47 crore, up 19.12 per cent from the Rs 599.78 crore turnover in 2005-06. The board of directors of the company has also declared a dividend of 45 per cent.

"The last quarter witnessed a fall in realisation rates without corresponding decrease in raw material rates. This coupled with a hardening rupee and rising interest rates has put pressure on margins for the industry," the Sutlej Textiles Vice-Chairman, Mr C.S. Nopany, told reporters here.