Sangam India - Growth Through Export

Sangam (India) Q2FY07 Net Profit Up By 74.09% At Rs 10.08 Cr

Sangam (India), one of the largest polyester-viscose dyed yarn manufacturer in India, has posted a 74.09 per cent rise in net profit to Rs 10.08 crore for the second quarter ended September 30, 2006 as compared to Rs 5.79 crore in the corresponding quarter previous year. Net sales during the quarter rose 52.39 percent to Rs 125.39 crore compared to Rs 82.28 crore during the corresponding quarter previous year. During the quarter, the company witnessed a significant surge in export sales. Export sales rose by 155.00 per cent to $ 9.2 million from $3.6 million.

On a sequential basis, the company reported a 41.77 per cent rise in net profit at Rs 10.08 crore compared to Rs 7.11 crore in the first quarter ended June 30, 2006 . During this period, net sales rose 30.34 per cent to Rs 125.39 crore compared to Rs 96.20 crore in first quarter ended June 30, 2006. Exports sales during this period rose 41.64 % at $ 9.2 million compared to $ 6.4 million in the first quarter ended June 30, 2006.

For the six months ended September 30, 2006 , the company has registered a 72.76 per cent rise in net profit at Rs 17.19 crore compared to Rs 9.95 crore. Net sales during this period rose by 41.83 per cent at Rs 221.59 crore compared to Rs 156.24 crore for the six month ended September 30, 2005. During this period, the company witnessed a 144.49 per cent rise in export sales at $15.7 million compared to $6.4 miillion in the same period last year.

"We are witnessing an accelerated growth in the dyed polyester-viscose yarn segment. Higher Volume growth following better demand from international & domestic market . the company is looking forward to get more revenue in value added product. Despite of higher provisioning for depreciation and interest for ongoing expansion the company has been able to increase operating and net profit margin substantially," said Mr R P Soni, Chairman, Sangam (India) while commenting on company's financial performance. The company's on-going expansion plan of 97,000 spindles, 140 looms, coal based captive thermal power plant with a capacity of 21 MV and fibre dyeing capacity of 30 MT with processing capacity of 50000 meters per day has progressed as per schedule. By September 30, 2006, 31,200 cotton spindles, 19,200 PV spindle and 110 weaving machines have become operational. Meanwhile, the board of director's has approved third phase of expansion and diversification programme of installation of additional 51840 spindles and 12 knitting machine for value addition in cotton yarn segment under TUFS having an outlay of Rs.167.40 crore. While the legal process of amalgamation of SPBL Limited with the company is being carried out as per schedule.