Nahar declares 102.22% profit

In its board meeting held in New Delhi, the company reported an increase of 102.22 per cent in its profit before tax (PBT). The board of directors of the company recommended a 10 per cent dividend for 2005-06.

Declaring the annual results of the company here today Kamal Oswal, Vice Chairman & Managing Director, Nahar Industrial Enterprises Ltd. (NIEL) said, "The growth in PBT is mainly because of better planning, forward and backward integration of textile units, better realization of value addition and working capital management."

Net Sales during the fiscal 2005-06 have gone up to Rs 694.14 crores from Rs 607.03 crores during the previous year showing an increase of 14.35 per cent.

During the same fiscal, Profit Before Tax has also zoomed to Rs 76.72 crores, which is 102.22 percent higher than the PBT of Rs 37.94 crores registered in the fiscal 2004-05.

On an equity base of Rs 35.46 crores, the Earning per share (EPS) of the company as on March 31, 2006 was Rs 26.31 per share as against Rs 6.65 per share on March 31, 2005.

Giving details of the other expansion plans undertaken during the year for textiles division (yarn & fabrics), Kamal Oswal said, "In 2005-06 NIEL started implementing two phased expansion programme with a total investment of exceeding Rs 800 crores. Out of this about Rs 400 crores is being invested in phase-I, which is under implementation and shall be completed by December 2006.

The impact of this expansion will be visible in the operations of current year. Besides this, we are going to implement phase-II of the expansion programme. This phase will be completed by 2008."

Disclosing the retail plans, Kamal Oswal said, "Presently we are running 80 Cotton County Exclusive Stores in franchise model. In the next three months we will be adding 50 more stores and plan to take this figure up to 200 by the end of this financial year".

He further said "We are expecting 100 percent growth in the turnover of NIEL's Garment Unit in this fiscal, taking the turnover to Rs 50 crores approximately. Our aim is to position NIEL as the foremost integrated Textile Company from Spinning to Retailing of Garments and the target is to achieve a turnover of Rs 1,500 crores by the end of 2010."