Yarn and fabric manufacturer Suryajyoti Spinning Mills, today reported a whopping 473.26% jump in its net profit at Rs 5.79 crore for the quarter ended March 31, against Rs 1.01 crore in the same period last fiscal.
The total sales of the company for the quarter stood at Rs 128.34 crore, recording a 65.38% rise, as compared to Rs 77.60 crore in Q4 FY 10.
"The global textile economy has recovered and we have witnessed a tremendous increase in the demand for textile products across the globe. This has been a key driver for an exceptional rise in our profits and we expect a similar growth trend in FY 12 too," the company's executive director, Arun Agarwal, said here.
The Hyderabad-based company is expecting a turnover of around Rs 500 crore in FY 12, he said, adding that to cope up with the increasing demand, Suryajyoti has embarked upon a expansion-cum-modernisation plan.
"We plan to invest around Rs 100 crore over the next two years to increase our production level by expanding spinning facilities as well as modernising the plants," Agarwal said.
Currently, the company has a capacity of 86,560 spindles and it plans to increase it by 25,000 over the next two years, he said.
For the year ended March 31, 2011, the company reported a 332.5% growth in the net profit at Rs 15.83 crore from Rs 3.66 crore in the last fiscal.
The total sales for the year grew by 46.27% to 394.26 crore as against Rs 269.53 crore in FY 10.
The company is eyeing south American market for increasing its exports, he said.
"We have been concentrating on Latin America where the demand for textiles is huge. We are exporting our goods in European countries and in the Far East. We also want to concentrate on South American market where we are seeing an increase in demand for yarn and fabrics," Agarwal added.
