Sintex Industries` first quarter net up by 20%

Buoyed by increased social spending by government, Kalol-based Sintex Industries Limited has posted a 20 per cent growth in its consolidated net profit for the quarter ended June 30, 2011. As against a profit after tax (PAT) of Rs 78.8 crore for first quarter of fiscal 2010-11, the company registered a net profit of Rs 94.6 crore for corresponding period of fiscal 2011-12.

A market leader in the plastic and textiles business segments, Sintex Industries' growth was driven by success in fulfilment of monolithic order book as well as growth in social spending by government. "Our results are a reflection of strong social spending begin intact by the government. Building products business has shown good traction during the quarter under review with a growth of 32 per cent this is despite first quarter being a lean period. Order intake in monolithic business continues to be robust. I strongly believe we are well poised for healthy growth in FY 2012," said Amit Patel, managing director, Sintex Industries Limited.

In terms of consolidated income, the company registered Rs 1128.8 crore for the first quarter of fiscal 2011-12 as compared to Rs 930.9 crore for corresponding period last year.

With strong growth across building products segment, new geographies have also driven growth in the company's prefab revenue.

"Enhanced applications of composites across sectors and our unique model offering services across continents for Fortune 500 companies is fostering the growth at Sintex. Increased off-shoring and backdoor manufacturing will enable significant growth potential for custom molding business. In all, we are poised for sound growth in both the businesses," said Patel.

The building materials business is driven by social spending in healthcare, education, sanitation and mass housing, where spending across segments continues to be strong. For the quarter under review, the building materials segment grew by 32 per cent. The company's textile segment revenue stood at Rs 109.3 crore for Q1FY12.