Vardhman Textiles, in its Q4 results has shown decline in net profit by 41.55 per cent to Rs. 90.20 crore in the quarter ended March 2015 as against Rs. 154.32 crore during the previous quarter ended March 2014. Sales increased 9.79% to Rs. 1407.79 crore in the quarter ended March 2015 as against Rs. 1282.21 crore during the previous quarter ended March 2014.
For the full year, net profit has declined 44.91 per cent to Rs. 359.11 crore in the year ended March 2015 as against Rs. 651.88 crore during the previous year. While sales increased 11.04 per cent to Rs. 5742.03 crore in the year ended March 2015 as against Rs. 5171.31 crore during the previous year ended March 2014.
Neeraj Jain, Joint managing director, Vardhman Textiles, said that total debt as on March 31 was close to about Rs. 2000 crore. The majority of the debt is covered under textile upgradation plan which is subsidised debt.
Talking about the reason for high income but low margins, Jain said that there are two, three factors. One, the new capacities have come last year where the numbers have increased and the overall volume has also gone up. The margins have come down again for one or two specific reasons.
However, Jain is confident to improve the number in FY16, as it hopes that the finance cost will be lesser than Rs. 29 crore this year.
