NewswireToday - /newswire/ -
Mumbai, Maharashtra, India, 2007/11/06 - Banswara Syntex Ltd (BSL), a vertically integrated garment manufacturing company, has posted a 2.55 per cent rise in Net Sales at Rs. 105.73 crore for the quarter ended September 2007 (Q2FY08) compared to Rs. [BSE Code: 503722; NSE Symbol: BANSWRAS]. NSE: BANSWRAS
103.29 crore in the corresponding quarter ended last year (Q2FY07). Net profit stood at Rs. 1.50 crore compared to Rs. 5.03 crore in corresponding quarter last year Q2FY07. The Earnings per Share worked out to Rs. 1.15 (Basic not annualized) for the quarter ending September 30, 2007.
Commenting on the financial performance, Mr. R. L. Toshniwal, Chairman said, “We have set up for 100% captive power plant in September 2007. The shift from furnace oil to thermal-based power plant is expected to cash in Rs. 20 crore on an annual basis. The coming quarters will reflect the true benefit of setting up the power plant.”
Meanwhile, the rest of the company’s Rs 227 crore expansion plans has progressed on schedule with installation of 10,000 additional ring spindles. Post expansion, the total installed capacity would stand at 1,28,000 polyester viscose spindles, 576 Airjet Spindles and 164 weaving looms and processing machines.
The company has commenced the 18 MW thermal-based power plant at Banswara. For the power plant, BSL plans to consume 100 % imported coal. This would help the company to cash in Rs. 1.70 per unit from the existing state electricity board cost of Rs. 4.55 per unit. Moreover, this will also avail a 10-year tax holiday for the company.
“Delay in deliveries of machineries has led out to a delay in the commencement of Garmenting plant at Surat. As a result, the Company’s capacity expansion has been delayed and the new 1.50 lakhs trousers and 30,000 jackets monthly capacity will come up only by end of FY 2007-08.” said Mr. Ravi Toshniwal, Joint Managing Director, Banswara Syntex Limited.
About Banswara Syntex Ltd
Banswara Syntex Ltd is a vertically integrated garment manufacturing company engaged in the manufacture of man-made, synthetic, blended and cotton yarn, all types of suitings and trouser fabrics. The current installed capacity of its plant in Banswara (Rajasthan) is 1,12,464 ring spindles, 576 Airjet spindles and 148 Airjet shuttle less looms. The company also has a ready made garments facility with an installed capacity to produce 1,25,000 trousers at Daman. BSL exports its products to more than 50 countries including US, UK, Canada, Spain, Germany, Italy, France, Philippines, Turkey, and GCC countries.
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