Nitin Spinners spurts after board OKs capex plan of Rs 950 cr

Nitin Spinners gained 1.29% to Rs 259.70 after the company's board approved capital expenditure of Rs 950 crore on expansion project.

The company said capacity addition is proposed to meet increasing demand, widening of product portfolio and to bring competitive cost advantage by having economies of scale.

As part of the expansion plan, the company will add 1.51 lakh equivalent spindles. The texile manufacturer currently has 3.32 lakh spindles. The company will also expand its knitted fabrics capacity by 2500 metric ton per annum. Currently, the company produces 8500 Mt per annum of knitted fabric.

The company also seeks to increase woven fabrics production by 10 million metres per annum from existing 30 million metres per annum.

The approximate time period for the completion of the project is 20 months. The company lastly added that it will finance the project through term debt and internal accruals.

Nitin Spinners is a manufacturer of Cotton Yarn, Knitted Fabrics and Finished Woven Fabrics. The Company was formed as a response to the apparent need in the Indian Textile Industry for high-quality products and services.

The company reported a 657% jump in net profit to Rs 90.28 crore on a 55.7% rise in net sales to Rs 664.66 crore in Q2 FY22 over Q2 FY21.

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