Visaka Industries Limited, a city-based company with presence in asbestos cement products and synthetic blended yarn, has registered a net profit of Rs 2.27 crore on a turnover of Rs 37.24 crore for the first quarter of the current financial year, as against a net profit of Rs 2 crore and sales of Rs 37.65 crore in the corresponding period of the last financial year.
On a paid-up capital of Rs 10.67 crore, it works out to an annualised earnings per share of Rs 8. The company made a provision of Rs 1.50 crore for depreciation and Rs 1.20 crore for tax during the quarter, as compared to Rs 1.14 crore and Rs 1.09 crore, respectively, in the previous period.
The capacity utilisation in the asbestos cement products unit at Midnapore in West Bengal, which started production in March this year, has been steadily increasing and the company hopes to achieve breakeven in this unit during the second quarter. It is expected to add to the bottomline in the second-half.
In the synthetic blended yarn division, the company has just launched polyester linen and polyester silk yarns." These two are the value-added products and expected to yield better profitability.
Volume- wise, the two products may account for 5 per cent of the total yarn production this year", said G Vivekanand, the managing director of the company, while announcing the first quarter results.
The synthetic blended yarn unit located near Nagpur has 20 air-jet spinning machines, which is equivalent to 30,000 spindles capacity.
The company proposes to expand the synthetic blended yarn unit after a year or so.
