Shri Lakshmi Cotsyn net profits dip

Kanpur-based integrated textile company, Shri Lakshmi Cotsyn, has registered a net profit

of Rs 21 crores during the quarter ended September 30, 2011, compared to its net profit of Rs 23 crores during the corresponding period of last year. This means the company’s net profit decreased by nine per cent this year. The decline in net profit margin is mainly attributed to tax provision of Rs 13 crores including deferred tax. Net sales of the company, however, rose to Rs 478 crores during the July-September. EBIDTA jumped 46 per cent to Rs 79 crores (Rs 54 crores) in the quarter under review. M P Agarwal, Chairman, said, “Our foray into the technical textile segment is the key factor for sales growth. So far, the technical textile segment was limited in technology and sophistication, but the increasing focus of the government is likely to offer greater opportunities.”

Shri Lakshmi Cotsyn, is a $400 million company is considered amongst one of the premier manufacturers of home furnishing and enjoys the competency in manufacturing denim fabric, terry towels, bed linen, cotton fusible interlining, embroidered fabric and technical textile products. It recently moved into technical textile segment, which is considered as the key factor behind the growth in its sales.