Nakoda Q1 PAT up by 81%

• Company to make investments of Rs. 1500cr during next 3years
• First phase of expansion at a cost of Rs.333 cr is nearing completion
• Rs.234 cr would be immediately spent for the 2nd phase of expansion
• Additional funds not exceeding Rs.216 cr is proposed to be raised by offering equity shares through Preferential Allotment & QIP or Depository Receipts

Nakoda Limited (BSE code: 521030), one of the largest manufacturers of the fully drawn yarn, reported a robust growth in revenue for the quarter ended, March 31, 2010.

The company saw an increase in revenue by a whopping 23.51% from Rs. 237.17 Cr to Rs. 292.43 Cr during the same period for the last fiscal.  The profit after tax for the quarter ended March 31, 2010 stood at Rs. 7.40 Cr, resulting into an increase of 81%, as against Rs. 4.09 Cr in the corresponding period of the last fiscal.

Income from the Manufacturing Segment rose by 26% to Rs. 123.28 Cr from Rs. 97.70 Cr for the quarter under consideration. In the trading segment, the sales touched Rs. 169.65 Cr from Rs. 139.47 Cr, an increase of 21%.

Commenting on the results Mr. Babubhai Jain, Chairman & Managing Director – Nakoda Limited said, “Once again the company has posted better results indicating continuous improvement in its operational parameters. We look forward to continuous and sustained growth in future”.

Nakoda Limited also informed the BSE about its ambitious plan to make investments of Rs. 1,500 cr. during the next three years to significantly expand its capacities in Polyester Yarn segment and consolidate its operations by further integration. The three year plan was approved by the Board of Directors in its meeting held on 10th May, 2010. Out of the total investment of Rs. 1,500 cr., Rs. 234 cr. would be immediately spent for the second phase of expansion to increase the spinning capacity from 1,00,000 MTPA to 1,40,000 MTPA. Nakoda’s first phase of expansion at a cost of Rs. 333 cr. is nearing completion and is expected to go on stream by August, 2010.

The Board has also proposed to enhance the capital base of the Company by making a preferential issue of Convertible Warrants of Rs. 108 cr. to the promoters and strategic investors. Additional funds not exceeding Rs. 108 cr. is proposed to be raised by offering equity shares through QIP or Depository Receipts. The proceeds would be deployed to meet the Company’s growth plans.

Nakoda’s spinning capacity will rise to about 0.5 million MTPA once the proposed plan is implemented. The company will then join 1 Billion USD Club by achieving a turnover of Rs. 5,000 cr.

About Nakoda Limited:
Nakoda Ltd (NL) [BSE Scrip Code: 521030] ranks among the largest manufacturers of FDY (Fully Drawn Yarn). It was incorporated in 1984. Initially it commenced business with a single texturising machine, with a capacity of 354 MTPA, at Silvassa in the Union Territory of Dadra and Nagar Haveli, and has grown leaps and bounds over its journey during 25 years. Nakoda is embarking upon major forward as well as backwards integration and continuously expanding its capacities to become one of the leading players in the industry. Besides consolidating its position, it has also set eyes on acquisition of domestic and overseas companies, businesses and projects.