NTC FY11 total income quadruples to Rs 2,741 cr

State-owned National Textiles Corporation (NTC) today reported nearly four-fold increase in its total income in FY11 to Rs 2,741 crore, most of which came from sales of mill lands in Mumbai and Ahmedabad.

However, the company also improved its core operations which gave it revenue of Rs 675 crore, up 40% over the last fiscal, NTC Chairman and Managing Director KR Pillai told PTI.

During FY11, the company had garnered Rs 2,011 crore by selling six defunct mill lands aggregating 50 acres. It had received Rs 178.91 crore out of land sales in previous fiscal.

Net profit of the company also increased to Rs 1,366 crore during the fiscal from just Rs 104 crore in the year-ago period.

 

Pillai said NTC targets to garner a total income of more than Rs 3,000 crore in the current fiscal, including Rs 2,000 crore from divesting two mill lands located in Mumbai's posh Prabhadevi area.

"However, it is not only sell off mill lands that we are banking on to improve income. In our core business also, we are hopeful of clocking a good growth through better efficiency and higher production," Pillai said.

NTC, which is mainly into spinning, hopes to clock Rs 1,000 crore sales turnover in the current fiscal from Rs 675 crore a year ago.

"We have already initiated steps to become an integrated company widening our business to weaving, processing and garmenting as well. This will give an additional boost to our topline," he said.

Pillai said that the company has also earmarked Rs 1,000 crore capex for the current fiscal mainly to jack up spinning capacity to 7.8 lakh spindles from 6.4 lakh now.

A part of the proposed investment will also go for revamping retail outlets, entering to technical textiles space and completing ongoing works at its three upcoming mills at Hassan, Achalpur and Ahmedabad.

The company, which currently employs around 8,400 people, will hire 66 human resource, marketing and finance professionals.