NIEL net profit up 342% at Rs 33 cr, 10% dividend recommended

New Delhi, May 18 (UNI) Nahar Industrial Enterprises Ltd (NIEL) today reported a 342 per cent jump in its net profit for the fourth quarter ending March 31, 2006 at Rs 33 crore, as against Rs 7.44 crore for the same period last year, while recommending a 10 per cent dividend.

The company's net profit for the year ending March 31, 2006 stood at Rs 80 crore, a jump of 300 per cent from Rs 20 crore last year, while its net sales for the period went up 14 per cent to Rs 694 crore from Rs 607 crore last year.

''The results reflect better planning, forward and backward integration of textile units, better realisation of value addition and working capital management,'' NIEL Vice Chairman and MD Kamal Oswal told reporters here while announcing the results.

Speaking on expansion plans, Mr Oswal said, ''Our total capital expenditure till the year 2008 is over Rs 800 crore, out of which Rs 400 crore will be invested into Phase-I, which is under implementation and will be completed by December 2006.'' He added that the ''remaining amount will be put into implementing Phase II, which will be completed by 2008.'' Out of the total Rs 800 crore capital, the company has mobilised around Rs 200 crore through Foreign Currency Covertible Bonds, alloted on zero coupon and YTM of 6.25 per cent with the put on call option of conversion.

Mr Oswal said, ''The Indian retail sector is growing in a big way. However, at present 96 per cent of the textile industry covers small scale sectors, and there is immense scope of retail in the organised sector which we are hoping to tap.'' He informed the company has a 20 per cent market share in the organised sector.

The 2400 crore Nahar group, also plans to expand two of its brands -- Monte Carlo and Cotton County.

''At present we have 80 Cotton Country exclusive stores in the franchise model, which we hope to ramp up to 200 by the end of this financial year, while the existing 15 Monte Carlo stores would be increased to 100,'' Mr Oswal said, and added that ''while Monte Carlo targets mostly metros, County Cotton will target the mid-segment in the small towns.'' The company is looking at a Profit After tax of Rs 169 crore in the year 2009, while its turnover is projected to more than double at Rs 1500 crore by the end of 2010 from the present Rs 700 crore.

NIEL has a 550 acre spinning and weaving facility at Lalru and Punjab.

UNI RA CS ND1458