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Nahar Spinning jumps after turnaround Q2 numbers

Capital Market 

Nahar Spinning Mills rose 3.08% to Rs 590 after the company reported net profit of Rs 136.58 crore in Q2 September 2021 as against net loss of Rs 16.80 crore in Q2 September 2020.

Net sales rose 55.88% to Rs 842.68 crore in Q2 September 2021 over Q2 September 2020.

Pre-tax profit stood at Rs 182.47 crore in Q2 September 2021 as against pre-tax loss of Rs 26.20 crore in Q2 September 2020.

During the quarter, total expenses rose 16.74% YoY to Rs 664.18 crore. Employee expense surged 42.33% YoY to Rs 68.73 crore. Raw material cost increased 39.92% YoY to Rs 467.92 crore.

Net cash from operating activities stood at Rs 337.85 crore as on 30 September 2021 compared with Rs 257.61 crore as on 30 September 2020.

During the current quarter, the new scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) was introduced by Ministry of Commerce and Industry vide notification dated 17 August 2021 for eligible goods exported. Accordingly, the company has recognised in revenue from operations the benefit of RoDTEP of Rs 35.72 crore during the quarter ended 30 September 2021, out of which Rs 9.96 crore benefit pertains to eligible export sales for the period from 1 January 2021 to 31 March 2021 and Rs 12.37 crore benefit pertains to eligible export sales for the period from 1 April 2021 to 30 June 2021.

The board has declared interim dividend of Rs 1.50 per equity share.

Further, the company said it has chalked out expansion and modernisation scheme involving capital expenditure of Rs 369 crore for increasing spindlage capacity by 31200 spindles, new air jet spinning unit and modernisation cum upgradation of company's spinning units. It will be implemented in full by financial year 2023.

Nahar Spinning Mills is a textile company. The company's products include yarns and knitted garments.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, November 10 2021. 12:55 IST