Denim maker Suryalakshmi Cotton Mills reported a 7.5 per cent rise in net profit for the quarter ended December 31 at Rs 7.03 crore.
The rise was mostly on account of higher sales, which touched Rs 173.79 crore during the period, up 15.12 per cent.
Paritosh Agarwal, managing director, said: “The profit has been marginal due to the steep increase in power tariff, apart from overhead expenses incurred on taking on stream the 25-MW captive power plant at the company’s denim division at Ramtek, near Nagpur.”
The company has finalised plans to set up a 50,000-spindle spinning unit in Maharashtra at the cost of Rs 140 crore. The Board has decided, in principle, to effect the merger of its subsidiary Suryakiran International Limited with the Company, with April 1, 2013 as the appointed date, the company said in a statement.
It has constituted a committee of Directors to work out the details.