Sangam net sales surge 6.5 percent

Sangam (India), a leading textile company has posted

a robust growth in the third quarter ended December 31, 2012. The company reported total sales of Rs 327.96 crores as compared to Rs 307.92 crores in the corresponding previous quarter. EBIDTA for the quarter stood at Rs 51.30 crores as against Rs 31.10 crores in the corresponding period last year. Higher realisations in textile business with expiry of toll business in infra-segment led to higher EBITDA during the quarter.

Operating margins improved from 10.03 percent to 15.57 percent on the back of changing product mix to value added fabrics in PV and fabrics. The October-December 2012 quarter witnessed a higher demand for yarn and fabrics with stable raw material prices. During the quarter, interest charges declined from Rs 18.11 crores to Rs 16.72 crores and the company has reported Profit after Tax of Rs 11.07 crores as compared to a net loss of Rs 1.84 crores in Q3FY12. The EPS for Q3FY13 stands at Rs 2.81 per share. During the quarter, the sales of textile business grew by 29 percent to Rs 327.96 crores as compared to Rs 253.92 crores in the corresponding previous quarter.

Commenting on the quarter results, R P Soni, Chairman, Sangam (India) said, “The textile business has picked pace on favourable government policies to cotton price stabilisation and demand push for apparel sector. With the completion of the denim expansion, the company has been able to capitalise by way of growth in the textile division. There are emerging opportunities for textile exporters which will enhance our growth in the sector near future.”