Nahar group's net profit jumps 35.34 per cent

Chandigarh, July 24 (UNI) Nahar Industrial Enterprises Ltd (NIEL) has recorded 35.34 per cent jump in the net profit from Rs 14.25 crore to Rs 19.29 crore during the first quarter of the current fiscal year.

The NIEL, the flagship company of Nahar Group of Ludhiana, grossed a revenue of Rs 203.30 crore as against Rs 174.20 crore in the corresponding period of the previous year, resistering a growth of 16.70 per cent. NIEL has got diversified interest in spinning, weaving, fabric, garments and sugar.

''The increase in net profit is mainly due to better planning, forward and backward integration of the textile units, better realisation of value addition and working capital management,'' NIEL Vice Chairman and Managing Director Kamal Oswal said here today.

The earning per share (EPS) for the first quarter of the current financial year has also increased to Rs 5.44 per share as against Rs 4.66 per share during the same period last year, showing a rise of 16.74 per cent.

Mr Oswal said the company has embarked upon expansion plans in the textile division with total capital outlay exceeding Rs 800 crore by enhancing the capacities of spinning, weaving, fabric processing facilities and retail stores, besides putting up 53-MW co-generation power project. The implementation of these projects will be in phases and is expected to extend up to financial year 2007-08, he added.

Disclosing the company's retailing plans, Mr Oswal said presently they are running 95 cotton county exclusive stores in franchise model. The company has set a target to have 200 stores in the next six months.

''Our aim is to position NIEL as the foremost integrated textile company from spinning to retailing of garments and the target is to achieve a turnover of Rs 1500 crore by the end of 2010'', he added.

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