Company achieves a top line growth of 28 % to touch Rs. 199.61 crore in Q3CY08; Pricing power improves due to better EBIDTA Margins YOY; Net profit for Q3 CY08 up 20 % at Rs. 3.08 crore.
Mumbai, Maharashtra, India, October 16, 2008 (PRESSbooth.ORG) -- Nakoda Textile Industries Ltd (NTIL) posted a robust 28 per cent growth in top line to touch 199.61 crore (YoY) for the third quarter ended September 30, 2008. The company’s EBITDA margin improved 116 basis points to 4.81 per cent as compared to the corresponding quarter last year. This was due to better realization on account of pricing and streamlining of the cost structure. Net profit (Profit after Tax) for Q3 CY08 was also up 20 per cent at Rs. 3.08 crore.
Commenting on the results Mr. B. G. Jain, CMD, NTIL, said “We have achieved remarkable results despite the slowdown in the global economy. We have managed our costs and pricing better in the wake of volatility in crude prices. Our capex plans are well on track.” About NTIL
Nakoda is ISO 9001-2000 company where quality management is a continuous process and a way of life. The company was incorporated in 1984 and initially commenced business with one texturising machine, with a capacity of 354 MT, at Silvassa. The company’s funding included a seed capital of Rs 5 lakhs from IDBI that used to be extended to technocrats.
In order to expand capacity, the company came out with its maiden public issue of fully convertible debentures of Rs 950 lakhs in 1992. The issue in which 12000 investors participated was oversubscribed by 7 times.
Backward Integration & diversification
In 1997, NTIL added four lines for manufacturing POY by importing machines from Taiwan. This project was financed with term loans from GIIC and GSFC and internal accruals. In 1999, the company picked up plant and machinery of Garware Nylons at Pune through an open auction of The Bombay High Court. Few years later NTIL acquired 2 POY lines from Indian Organic Chemicals Ltd. These initiatives helped them to reach the present capacity of 30000 MT POY.
In 2007, Nakoda added six lines to manufacture 19500 MT of fully drawn yarn (FDY) at its Karanj plant near Surat. The Rs. 26.75 crore project was funded by Rs. 18 crore term loan and the remaining came from internal accruals. Commercial production started in November 2007.
NTIL’s plants are strategically located at Karanj in Surat district and are better placed to cater to their customers who are texturisers. 95 per cent of India’s texturisers are located in South Gujarat and Silvassa. Nakoda caters to the small and medium texturisers. The company has a 3 per cent market share in the POY segment and 20 per cent share in the FDY segment. POY and FDY manufacturing is highly capital intensive and are manufactured in hi-tech plants. The company has a headcount of 200 out of which 90 are workers.
Sound Management Quality The management team is driven by experienced hands. The CMD –Mr. BG Jain is an MBA, with 30 years of experience in the industry. Helping him in his endeavour is Mr. D.B.Jain, Jt MD is an MBA with 6 years experience in this line. Mr. B L Maheshwari a Chartered Accountant with 24 years of industry experience and Mr. SK Bhoan a technocrat with 36 years of experience are independent directors on the board.
Contact:
P S Misra
Nakoda Textile Industries Ltd.
Tel: + 91 93240 08756
Raghavendra Rao/Jaydeep Raval
Adfactors PR
Tel: + 91 22 2281 3565
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