Suryalakshmi Cotton Q2 net up 30% at Rs 8.7 cr

Revenues grew 13.4% to Rs 193 cr

Suryalakshmi Cotton Mills Limited, a Hyderabad-based denim manufacturer, reported a net profit of Rs 8.69 crore for the second quarter ended September 2012, as compared to Rs 6.70 crore in the correspondent quarter last year, reflecting a growth of  29.7%.

Revenues grew 13.41% to Rs 192.77 crore during the quarter under review, as against Rs 169.97 crore during the same period a year ago.

The company has recently commenced operations of its 25-Mw captive power plant at its denim division near Ramtek, 57 kilometre from Nagpur in Maharashtra.

It is now in the process of raising Rs 100 crore under the Centre’s Technology Upgradation Fund Scheme (TUFS) this year to set up a 50,000-spindle spinning unit at Nagpur, which is expected to be commissioned in two phases by 2014.

“With few expansions in queue and the festive season in progress, we expect a fresh demand from both the domestic and international markets, which will help us boost our performance in the coming quarters,” Paritosh Agarwal, managing director of Suryalakshmi Cotton, said in a release on Monday.

Suryalakshmi Cotton Mills’ stock is currently trading at Rs 76.40 on the BSE, up  2.41%, over the previous close of Rs 74.60.