Lagnam Spintex hit an upper circuit limit of Rs 10% to Rs 90.45 after the company's net profit surged 107.05% to Rs 9.40 crore on 45.03% rise in net sales to Rs 90.95 crore in Q3 December 2021 over Q3 December 2020.
Profit before tax soared 151.24% to Rs 13.14 crore in Q3 December 2021 over Q3 December 2020. Total expenses jumped 35.43% to Rs 78.02 with cost of materials consumed climbing 60.58% to Rs 63.19 crore during the period under review.The company's board declared interim dividend of 0.50 per equity share. Record date is set on 28 January 2022.
The board also approved capital expenditure of Rs 212 crore on expansion project of 41,472 spindles of 100% compact cotton yarn at the existing unit situated at A 51-52, RIICO Growth Centre Hamirgarh, Bhilwara-311001, Rajasthan.
The mode of financing will be through term debt and internal accruals. The capacity addition is proposed to meet increasing demand, entry to new markets & product mix, to meet new customer base, to bring competitive cost advantage and to meet gain of competitive advantage.
Lagnam Spintex is engaged in manufacturing high quality ring & open end yarn for domestic and export market ranging from count Ne 4 to Ne 30 which is used in denim, terry towels, bottom wears, home textiles and industrial fabrics, etc.
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