Alok Industries net up 28% on sales growth

BS 200 SCORECARD

Alok Industries, an integrated textile manufacturer, has posted 28.2 per cent rise in net profit to Rs 32.64 crore for the quarter ended September 30 against Rs 25.46 crore for the corresponding period last year.

The company's net sales grew 20.77 per cent to Rs 417.18 crore during the second quarter, from Rs 345.44 crore a year ago. The growth in net sales came mainly from income from exports, which jumped 44.88 per cent to Rs 128.68 crore from Rs 88.82 crore in the same period of 2005-06.

"With the acquisition of Mileta and the alliance with Teviz, we have taken steps towards manufacturing of value-added products, which will further expand our presence in the European markets and improve realisation," said Managing Director Dilip Jiwrajka.

The introduction of value-added products also helped the company register better profit margins. Operating profit margins rose to 22.83 per cent from 20.69 per cent.

Earning per share for the September quarter also improved to Rs 1.92 against Rs 1.65 in the same period last year.

Alok Industries signed an MoU to acquire 60 per cent stake in Mileta International, and reserved the right to scale up its holding by another 19.6 per cent.

The expenditure on the material consumption grew to Rs 242.67 crore for the quarter from Rs 216.41 crore during the same period last year.