Alps Industries net profit rises 9% to Rs 7.76 cr

CORPORATE SCORECARD

Alps Industries, one of the leading yarns and furnishings manufacturers, posted an increase of 9.45 per cent in its net profit at Rs 7.76 crore in the quarter ended December 31, 2006, compared with Rs 7.09 crore during the corresponding quarter last year.

The net sales jumped by 65 per cent to Rs 113.75 crore against Rs 67.93 crore in the same period last year.

The company's consolidated net profit for the first three quarters of the current financial year stood at Rs 23.27 crore as compared with Rs 16.45 crore in the corresponding period last year. The sales, similarly, increased during the nine-month period to Rs 312.93 crore against Rs 176.12 crore, up 77.68 per cent.

"The performance of the company has been in line with our estimates. The domestic market is becoming even more exciting and we are taking steps to increase our visibility here, while taking steps to improve our reach in the markets overseas," said Sandeep Agarwal, managing director, Alps Industries.

The company is on a Rs 400 crore expansion plan. The project includes setting up spinning and weaving plants across the country.

Yarns business contributed around 37 per cent to the total sales of the company in the December 2006 quarter. "Our home furnishing business also grew by 7 to 8 per cent, whereas the architectural business grew by 30 per cent," added Agarwal.

The different facilities of the company are expected to go onstream by July 2008. The company currently has a capacity of 97 tonne per day. Its weaving capacity is 19 million metre per annum.

On the back of growth in its business, the company expects its annual turnover to reach Rs 425-450 crore by the end of the current financial year.

"Domestic growth is also driving up the housing demand reflected in the realty boom. We are taking full benefit of this growth, as our architectural products find applications both in housing and commercial properties.

"We have expanded our yarn capacity more than 10 times in the last one year, while developing differentiated products even in this commodity segment," added Agarwal.

Alps Industries is a vertically integrated textile company with eight manufacturing facilities. It is also in the domestic blinds and awnings business and other architectural products such as wooden floorings and aluminium composite panels.