RSWM Q2 net rises 15.3 pc

New Delhi, Oct 30 (UNI) RSWM Ltd, a leading integrated player in the textiles sector, today posted a 15.3 per cent jump in net profit during Q2FY07 at Rs 7.16 crore from Rs 6.21 crore in Q2FY06.

The company's net revenues were higher by 4.9 per cent to Rs 235.8 crore from Rs 224.7 crore in the corresponding quarter last year.

Mr Riju Jhunjhunwala, Joint MD, RSWM Ltd, said, ''We witnessed improvement in demand for yarn from the domestic and export markets during Q2FY07. The buoyancy in the yarn segment is expected to continue in the future and the outlook looks encouraging for the segment.'' EPS for the quarter was higher at Rs 3.10 from Rs 2.68 in Q2FY06.

During H1FY07, the company reported an increase of 28.4 per cent in net profit to Rs 12.54 crore while the EPS rose at Rs 5.42 from Rs 4.22 in the first half year of the current fiscal.

The net revenue climbed by 12.2 per cent at Rs 475.13 crore from Rs 423.59 crore. Cash profits saw a rise of 37 per cent to Rs 41.3 crore.

During the Q1FY07, RSWM had announced a capex plan for FY2007 to FY2009, where the company will invest Rs 900 crore (including phase I and phase II plans) over the next three year to establish a power plant, enhancing yarn capacities, setting up denim operations and other capex initiatives.

The capex initiatives announced in the last quarter were all moving as per schedule and the results would start reflecting from Q4 of this fiscal, Mr Jhunjhunwala said.

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