The Hindu Business Line : Visaka Industries Q1 net up at Rs 14.64 cr

Miryalaguda, Aug. 1 Visaka Industries Ltd, for the first quarter ended June 30, 2008, has reported a net profit of Rs 14.64 crore (Rs 6.08 crore). Net sales for the period increased 33.69 per cent to Rs 172.26 crore (Rs 128.85 crore).

Mr G. Vivekanand, MD, said income from the building products segment increased 40.06 per cent to Rs 136.63 crore while synthetic blended yarn segment rose 23.71 per cent to Rs 35.63 crore. Mr Vivekanand also announced that the company had started commercial production of reinforced building boards from the newly commissioned unit in Miryalaguda. “The unit has been set up at a cost of Rs 36 crore for which the funds were raised through a QIP placement in January 2007 and production started from May 1,” he told visiting mediapersons.

The facility has an installed capacity of 4,000 tonnes per month, but is currently producing 1,000 tonnes per month. “We expect 100 per cent capacity utilisation from January next year and the project is expected to break-even by end of the third quarter of the current fiscal,” he said.

He added that once the plant operates to full capacity, they expect revenues of around Rs 40 crore during the first full year of operations.

The company, he said, is also looking at manufacturing 50 mm sandwich panels which is expected to be ready by the end of October this year. “The facility is being set up with an investment of Rs 10 crore and will have a capacity of making 600 panels per day,” he said.

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