Driven by higher depreciation and amortisation expense, net profit at North Indian textile major, Vardhman Textiles Ltd plunged 59.5 per cent year on year in third fiscal quarter ended December 31, 2014.
For the third quarter of fiscal 2015, Vardhman reported net profit of Rs. 70.95 crore as against Rs. 175.24 crore in the third quarter of fiscal 2014, down a massive 59.5 per cent.
At the same time, net sales for the reporting quarter grew under 1 per cent at Rs. 1,429.11 crore from Rs. 1,415.98 crore in corresponding quarter of previous fiscal year.
Total expenses at the textile major drove up 16.42 per cent from a year ago quarter to Rs. 1,346.84 crore, driven by 71.5 per cent year on year surge in depreciation and amortisation expense.
Cost of materials consumed also rose 11.95 per cent to Rs. 726.79 crore for the quarter under review compared to Rs. 649.17 crore in the same quarter of last fiscal year.
Profit before finance cost & exceptional items also fell steeply by 56 per cent to Rs. 120.52 crore as against Rs. 274.37 crore in the prior fiscal year third quarter.
Vardhman said its profit before tax reached Rs. 96.45 crore in the third quarter of fiscal 2015 from Rs. 243.24 crore in the corresponding quarter of fiscal 2014.