| TT Ltd announces 49.31% growth in net profits
TT Ltd, a vertically integrated textile company, has posted a turnover of 164.92 crores (growth of 17%) and net profit of Rs. 2.51 crores (growth of 49.31%) for year ending 31.3.2005. The fuel and power costs went up by over Rs. 1.50 crores in this year due to diesel prices going up, which resulted in profits being much lower than estimated. The Company is therefore installing power projects to bring down power costs on a war footing.
The Company announced major expansion plan of Rs. 120 crores over the next 2 years in order to take advantage of the oncoming opportunities in the global market for the Indian textile industry in the coming years. The Company is planning to install 43000 spindles over two locations and invest in captive power projects to bring down power costs apart from expanding its garment business in Indian market under its TT brand.
This expansion would be funded with a mix of internal accruals, equity and debt under the Textile Upgradation Scheme. It plans to raise about Rs. 20 crore equity from the markets in the near future. The promoters would pick up on a preferential basis 5% equity or warrants at a pricing determined as per regulations.
TT LTD CAPITALISES ON THE POST QUOTA TEXTILE BOOM - POSTS INCREASE OF 159% IN SALES AND 191 % IN NET PROFIT
TT Limited, a vertically integrated textile company has posted very impressive results for the quarter ended Dec 31, 2005. It has recorded a sales of Rs. 105.52 Crores and a net profit of Rs. 1.83 crores. This is a impressive increase of 159 % in sales and 191 % in net profit for the quarter ended 31.12.05. Further a rise of 79 % in sales and 100 % in net profit has been recorded for the 9 months ending 31.12.05 over corresponding period last year. The annualized EPS for the company stands at Rs 4.61 per share. The turnover for 9 months ended is Rs. 203.39 crores and net profit is Rs. 3.75 crores.
The Company has started an expansion project of Rs. 116 crores which has been appraised by IDBI and would be approaching the equity market shortly for the equity portion of the project. As part of the expansion project the company is setting up a new ginning factory with a daily capacity of 60 MT, adding 43000 spindles, setting up 2.5 MW wind power project and a captive power plant for its North India unit. The ginning project and wind power project would be commissioned by March 2006. 18000 spindles would be commissioned by Jane 2006 and the balance 25000 spindles within financial year 2006-07.
As per the Joint MD, Mr. Sanjay K Jain the company is gearing itself up in terms of capacity and quality to capture the oncoming opportunities in the textile field in India. The Company has established markets in over 20 countries in the world and has a strong domestic presence via its 40 year old brand "TT".
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