Eastern Silk registers 55.6 pc net profit in Q2

Kolkata, Oct 09: Eastern Silk Industries Limited has reported 55.6 per cent growth in net profit in the quarter ended September 30 at Rs 16.18 crore against Rs 10.40 crore in the corresponding quarter last year.

The topline registered 25.52 per cent rise to Rs 116.63 crore from Rs 92.92 crore in the corresponding quarter last year, company sources here today said.

Significantly, the operating profit margins have shown healthy improvement. It has risen to 20.8 per cent compared to 16.9 per cent in the second quarter of last year resulting into higher value addition and increasing share of machine-made fabrics in the company's production.

Net profit for the sixth months ended on Septemeber 30 was Rs 30.53 crore on net sales of Rs 229.59 crore. The fully diluted earnings per share works out to Rs 19.34.

The US and Europe account for about two-third of the company's exports. It is today the largest exporter of silk fabrics with a share of around nine per cent of India's exports.

The company has changed its product mix in favour of high volume furnishing fabrics as compared to low volume fashion apparel fabrics. Sales from furnishing fabrics increased from 40 per cent in 2003-04 to 80 per cent in 2005-06.

Capacity utilisation of mill-made segment is currently around 90 per cent due to strong demand from overseas customers. The company has engaged European designers to develop new designs with better construction of fabrics for high end products.

UNI