Mandhana Industries Q1 net up 22% at Rs 15 cr

Textiles and apparel manufacturer Mandhana Industries today reported a 21.53% growth in net profit at Rs 15.50 crore for the first quarter ended June 30.

Net profit stood at Rs 12.76 crore in the first quarter in FY11, Mandhana Industries said in a release here.

There was a 42.56% rise in net sales in the period under review at Rs 205.04 crore from Rs 143.82 crore in the corresponding quarter last fiscal year.

"Fall in raw material prices, coupled with steadily growing domestic and overseas demand for finished fabrics as well as garments, is expected to yield further improvement in the operating margins," the company Joint Managing Director Manish Mandhana said.

"With the expanded garmenting capacity at Tarapur and Baramati [both in Maharashtra] coming into play during the latter half of this year, we would be equipped to cater to the increasing overseas demand for our garments and this will be reflected in a healthy growth in sales and profitability in the second half of the current fiscal year," he said.

Considering the capital intensive nature of the textile and apparel industry, the rising interest rates pose a potential threat to the net margins, Mandhana Industries Vice President (Finance and Corporate Affairs) Mitesh Shah said.