Sangam (India) reports Q2FY16 net profit up by 56 pct

The company’s total revenue for the quarter ended September 30, 2015 (Q2FY16) increased by 8.15% to Rs.401.02 crore as against Rs. 370.79 crore in the quarter ended September 30, 2014(Q2FY15).

 

Earnings before Interest, depreciation and Taxation (EBIDTA) registered an increase of 14.97% to Rs. 61.72 crore in Q2FY16 from Rs. 53.68 crore in Q2FY15. Net profit surged by 56% to Rs. 18.65 crore from Rs. 11.97 crore in the Q2FY15. The company reported earnings per share of Rs. 4.73 in Q2FY16 compared to Rs. 3.04 inQ2FY15.

 

The company’s OPM improved by 149 bps to 15.99% in Q2FY16. Increased integration  & focus on exports helped the company in maintaining realizations, despite falling input prices.

 

Commenting on the results, R. P. Soni, Chairman, Sangam India Ltd said “I am happy to present yet another robust quarterly performance for our company. Commodity prices continue to soften globally over the last couple of months and yet we have managed to contain its impact on our revenues. The management’s strategy to increase focus on exports seems to be yielding better-than-expected results, with our overall exports reporting a sharp jump of 46% YoY and 49% QoQ. What is even more encouraging is that this growth was witnessed in all three categories; with Yarn exports registering a growth of 18% YoY (72% QoQ), Denim exports reporting a growth of 1250% YoY (40% QoQ) & PV Fabric exports reporting a growth of 15% YoY (29% QoQ)."

 

"These results are in line with our strategy to increase the export of value added products in lieu of lower margin yarn export. Going forward our focus will continue on increased integration and higher export, enabling further margin improvement," Soni said.