Sangam India - Rise Of The Profit
Sangam India - There's More To Come
Rajasthan-based Sangam (India), the largest polyester-viscose dyed yarn manufacturer in India, has posted a 123.46 per cent rise in net profit at Rs 14.48 crore for the fourth quarter ended March 31, 2006 as compared to Rs 6.48 crore in the previous year's corresponding quarter. Net sales rose 35.86 per cent to Rs 107.89 crore compared to Rs 79.41 crore during the same quarter in the previous year. Operating profit margins improved substantially to 21.01 per cent from 16.66 per cent. Exports sales during the quarter jumped by 240 per cent to Rs 40.58 crore from Rs 11.93 crore during the corresponding quarter last year.
The company's board of directors has approved the scheme of amalgamation of SPBL into Sangam (India). The board also approved the swap ratio of 1:4, that is, one share of Sangam (India) for every four shares of SPBL Ltd. The appointed date of amalgamation was April 01, 2006. Further, the board has recommended a dividend of 15% (Rs 1.50 per equity shares of Rs 10 each) for shareholders. Commenting on the merger, Mr R P Soni, chairman, said, "The merger of SPBL is part of our business synergy and should improve our operating margins by 200-300 basis points for fabric division. Further, the merger will give us an additional flock base home furnishing product with well established brand Laurel."
Meanwhile, the company has registered a 76.30 per cent increase in net profit at Rs 24.77 crore for the financial year ended March 31, 2006 compared to Rs 14.05 crore last financial year. Net sales increased by 19.75 per cent to Rs 346.78 crore compared to Rs 289.58 crore in the corresponding period last year. Operating profit margins improved to 17.11 per cent from 14.73 per cent. During the year, the company's export sales rose by 112 per cent to Rs 86.29 crore compared to Rs 40.69 crore in the previous year.
The company's on-going expansion plan of Rs 541 crore has progressed as per schedule with 20,400 cotton spindles and 90 weaving machines having become operational in March 2006. The revenue from these operations will be evident from next quarter onwards. The project will be financed through a mix of debt and equity. The company has tied up with banks for term loan to fund the expansion. Sangam India will get a five per cent interest subsidy on the loan amount under the Technology Upgrade Fund Scheme (TUFS) of the Government of India.
Promoted by first-generation entrepreneurs R P Soni and S N Modani Sangam India has, at present, 64,032 spindles of polyester-viscose dyed yarn installed in Bhilwara along with 127 weaving machines and a 10 MW thermal power plant. The company also has a strong presence in the Indian synthetic blended fabric segment with brands like Anmol and Sangam. The company has an established client base, that includes Raymond, Reid & Taylor, Siyaram and Grasim. Its fabric is marketed through a network of 100 dealers and 1,000 retailers.
The company's board of directors has approved the scheme of amalgamation of SPBL into Sangam (India). The board also approved the swap ratio of 1:4, that is, one share of Sangam (India) for every four shares of SPBL Ltd. The appointed date of amalgamation was April 01, 2006. Further, the board has recommended a dividend of 15% (Rs 1.50 per equity shares of Rs 10 each) for shareholders. Commenting on the merger, Mr R P Soni, chairman, said, "The merger of SPBL is part of our business synergy and should improve our operating margins by 200-300 basis points for fabric division. Further, the merger will give us an additional flock base home furnishing product with well established brand Laurel."
Meanwhile, the company has registered a 76.30 per cent increase in net profit at Rs 24.77 crore for the financial year ended March 31, 2006 compared to Rs 14.05 crore last financial year. Net sales increased by 19.75 per cent to Rs 346.78 crore compared to Rs 289.58 crore in the corresponding period last year. Operating profit margins improved to 17.11 per cent from 14.73 per cent. During the year, the company's export sales rose by 112 per cent to Rs 86.29 crore compared to Rs 40.69 crore in the previous year.
The company's on-going expansion plan of Rs 541 crore has progressed as per schedule with 20,400 cotton spindles and 90 weaving machines having become operational in March 2006. The revenue from these operations will be evident from next quarter onwards. The project will be financed through a mix of debt and equity. The company has tied up with banks for term loan to fund the expansion. Sangam India will get a five per cent interest subsidy on the loan amount under the Technology Upgrade Fund Scheme (TUFS) of the Government of India.
Promoted by first-generation entrepreneurs R P Soni and S N Modani Sangam India has, at present, 64,032 spindles of polyester-viscose dyed yarn installed in Bhilwara along with 127 weaving machines and a 10 MW thermal power plant. The company also has a strong presence in the Indian synthetic blended fabric segment with brands like Anmol and Sangam. The company has an established client base, that includes Raymond, Reid & Taylor, Siyaram and Grasim. Its fabric is marketed through a network of 100 dealers and 1,000 retailers.
posted by Raj @ 11:01 AM
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