Nahar Spinning Mills

The company has reported marginal growth in sales and profits during the three months ended December 1996. Sales at Rs 73.39 crore increased by 6.6 per cent over the three-months period of the previous year. Total expenditure increased by 8.8 per cent and resulted in lower growth in gross profit and net profit. Gross profit, during the period, increased marginally by 3.3 per cent to Rs 13.62 crore. Depreciation provision for the three-months period was up by 70 per cent to Rs 2.9 crore. Owing to this, net profit showed a modest decline of 6.5 per cent to Rs 10.72 crore. Gross margins on sales during the period fell marginally to 18.6 per cent from 19.1 per cent. The results for the nine-months period ended December 1996 showed an encouraging growth in exports and domestic turnover. Exports turnover during the nine months was up by 41.7 per cent to Rs 129.7 crore. Local sales also looked up by 36.7 per cent to Rs 132.2 per cent. However, due to a 45 per cent rise in the cost of production, the GPM declined to 15.7 per cent from 18.9 per cent in the previous year.

Market price: Rs 218.50, EPS: Rs 51.79, P/E: 4.21