Alok registers 283.02% Q2 growth, to exit non-core biz

Recording a 283.02 per cent growth in net profit at

Rs 289.62 crores on a standalone basis for the quarter ended September 30, compared to the same period last year, textile company Alok Industries is targeting March 2014 to exit all its non-core businesses, mainly real estate and UK retail.

The company’s net profit stood at Rs 75.61 crores in the corresponding quarter of last fiscal, Alok Industries said in a release. Its net sales went up by 51.28 per cent to Rs 3,324.77 crores for the period under review, compared to Rs 2,197.70 crores in the same period of the last fiscal.

“This performance is a reflection of the company’s strategy of diversifying products, markets and customers along with integrated business operations in cotton and polyester segments. We will continue to focus on improving operational parameters, exiting non-core businesses and monetising them to reduce debt and improving cash flows,” said Managing Director Dilip Jiwrajka.

“The company is not undertaking any new projects barring those that are ancillary to the existing ones and for de-bottlenecking,” he said. Exports for the second quarter stood at Rs 832.97 crores, against Rs 786.99 crores in the same period of the last fiscal, registering a growth of 8.32 per cent.

Alok is also looking at streamlining its retail business especially domestic by keeping only the profitable stores. The company has created major impairment of Rs 92 crores for three businesses related to retail – Alok H&A, Alok Retail and Alok Apparels.