Suryalakshmi Cotton

More than a blended yarn, this company is today a denim manufacturer. In Q3FY13, of the total sales of Rs.185 crore, 52% came from denim, 42% from spinning and 6% from power. Overall, it has been  a steady but dull YoY performance, with net sales rising 15% at Rs.174crore and net profit was at Rs.7 crore, up 8%. QoQ, the numbers have taken a beating, with net sales dropping 10% and net profit down 22%. Power and fuel costs have gone up tremendously; for 9MFY13, it was at Rs.24 crore which is already 80% of FY12 interest cost of Rs.30 crore. With one more quarter to go, surely it is going to up further.

The company plans to set up 50,000 spindles spinning unit in Maharashtra to benefit from the additional TUF subsidy and capital subsidy being offered by Government of Maharashtra. Its 25MWcaptive power plant at Ramtek in Nagpur is also expected to become power surplus and this will help bring down the power costs, thereby improving margins. It also plans to merge its subsidiary Suryakiran International Ltd with the company with April 1, 2013.  Its net profit for 9MFY13 stands at Rs.24 crore and that of Fy12 is at Rs.28 crore, surely it will end FY13 on a much higher note.