Amarjothi Spinning

Amarjothi Spinning Mills is a Tirupur based speciality yarn manufacturer. Better revenue, lower costs, lower interest outgo and a higher other income helped the company end Q2FY17 with a net profit of Rs.6 crore, three times more than the Rs.2 crore it had posted in previous Q2. Net sales rose by a modest 4% at Rs.54 crore but what really helped was the 4% drop in costs, 57 increase in other income and 9% drop in interest outgo. EBITDA came in at Rs.13 crore, up 44% and margins improved from 17.31% to 24.07%.

The company’s equity is at Rs.6.75 crore and reserves at Rs.80 crore. The good news – it ended H1FY17 with a net profit at Rs.11 crore v/s Rs.7 crore posted in FY16; clearly this fiscal will be a bumper year. Annualised EPS (FV of Rs.10) stands at Rs.34.

Debt currently stands at Rs.66 crore and promoters stake has come down to 61.29% in Q2FY17 from 62.70% in Q1FY17.