Vardhman Textiles has surged 8% to Rs 410 on the Bombay Stock Exchange (BSE). The stock currently trading nears to its all-time high market price of Rs 420 touched in May 2006.
Shares of textile manufacturer has outperformed the market by appreciating 67% so far in the current calendar year 2013, compared to 4.5% rise in benchmark S&P BSE Sensex and 2.1% fall in BSE500 index.
Ludhiana-based Vardhman Textiles has reported net profit of Rs 322 crore during the first half of 2013 – 14 (April-September), compared with a profit of Rs 324 crore during the entire year ended March 2013. The company had posted a net profit of Rs 124 crore in the first six months of last year.
The company has reported nearly 700bps jump in EBITDA margin at 27.08% for the recently concluded quarter.
"There has been a spurt in the margins essentially due to favourable conditions both in respect of availability of raw materials at a reasonable cost and the pull in the demand of yarn owing to the increase in export of yarn to China," Vardhman Textiles said in a press release.
The management feels that the increase in cotton prices this year, as compared to last year, and relative lull in demand as of now may not allow the margins to continue at this level.
Shares of textile manufacturer has outperformed the market by appreciating 67% so far in the current calendar year 2013, compared to 4.5% rise in benchmark S&P BSE Sensex and 2.1% fall in BSE500 index.
Ludhiana-based Vardhman Textiles has reported net profit of Rs 322 crore during the first half of 2013 – 14 (April-September), compared with a profit of Rs 324 crore during the entire year ended March 2013. The company had posted a net profit of Rs 124 crore in the first six months of last year.
The company has reported nearly 700bps jump in EBITDA margin at 27.08% for the recently concluded quarter.
"There has been a spurt in the margins essentially due to favourable conditions both in respect of availability of raw materials at a reasonable cost and the pull in the demand of yarn owing to the increase in export of yarn to China," Vardhman Textiles said in a press release.
The management feels that the increase in cotton prices this year, as compared to last year, and relative lull in demand as of now may not allow the margins to continue at this level.
