Rajasthan Spinning bottom line shoots up 70%

CORPORATE SCORECARD

The Rajasthan Spinning & Weaving Mills, owner of Mayur Suitings, has posted a net profit of Rs 22.4 crore for the quarter ended March 31, which is a rise of 69.69 per cent over the corresponding quarter of 2005-06.

Net sales for the quarter stood at Rs 294.1 crore , a rise of 3.55 per cent over last year's Rs 284 crore. Earnings per share for the quarter stood at Rs 9.69, compared with Rs 5.71 in the corresponding quarter of 2005-06, a rise of 69.70 per cent.

"During the year, we witnessed a robust demand environment for both cotton and synthetic yarn and expect this positive trend to continue," said Riju Jhunjhunwala, joint managing director.

The company is planning to enter the denim segment by building a plant, which has a capacity to produce 14 million metres.

The plant will be ready by June, 2007 at a cost of Rs 85 crore. RSWM is also investing in a 45 mw thermal plant, which is also expected to start production by June 2007. "The total investment in the denim and the power plant is around Rs 350 crore," added Jhunjhunwala.

In 2006-07, the company posted a net profit of Rs 44 crore, a rise of 139 per cent over Rs 18.4 crore posted in 2005-06. Net sales stood at Rs 1042 crore, a rise of 55.17 per cent over the last year's figure of Rs 671.5. Earnings per share in 2006-07 rose by 107.18 per cent at Rs 19.04 against Rs 9.19 in the previous year.