Suryajyoti Spinning Mills Ltd Q2 FY07 Sales up 29%, PAT up 49%

- Q2 FY07 Sales up 29%, PAT up 49%
- Q2 FY07 Operating margins increase to 13.5%
- H1FY07 EPS up 35%
- Expanded capacities go on-stream
- Aggresive expansion plans to further drive growth in FY07 and FY08

Secunderabad, Wednesday, 25 October 2006: Suryajyoti Spinning Mills Limited, a leading manufacturer of a wide range of yarns, today announced its unaudited financial results for the quarter and half year ended 30 September 2006.

Q2FY07 Performance review:

• Total Income for the quarter increased by 30% to Rs. 42.93 crore.
• EBITDA was higher by 36% at Rs. 5.72 crore compared to Rs 4.21 crore in Q2FY06. EBITDA margin improved to 13.5% from 12.8%.
• PAT stood at Rs. 3.12 crore, up 49% from Rs. 2.1 crore. PAT margin increased to 7.4% from 6.4%.
• EPS for Q2 was Rs 2.24, up 35%.
• CEPS was Rs. 3.14, up 24%.

H1FY07 Performance review:

• Revenues for the half year increased by 18.4% to Rs. 77.5 crore.
• EBITDA was higher by 32.4% at Rs. 11.04 crore from Rs 8.34 crore in Q2FY06.
• PAT at Rs. 6.16 crore, up 47% from Rs. 4.19 crore. PAT margin increased to 7.9% from 6.4%.
• EPS for H1FY2007 was Rs 4.48, up 35%.
• CEPS was Rs. 6.23, up 25%.

Commenting on the financial results, Mr. A.K. Agarwal, Executive Director of Suryajyoti Spinning Mills Limited, said:
"Suryajyoti’s Q2 results are in continuation of the strong performance delivered In FY2006. Capacity expansion at Makthal and our modernization initiatives have led to increased productivity. Looking ahead, we see revenue expansion and stronger margins on the back of our ongoing capex program at Rajapur. We maintain an optimistic outlook on our business and are confident that we will deliver significant value expansion for all stakeholders."

Operational Highlights:

• 37.98 lakh kgs of yarn sold in Q2FY07 compared to 34.05 lakh kgs in Q2FY06. Average realizations in Q2FY07 were higher at Rs. 110 per kg compared to Rs.95.70 per kg.
• Exportable yarn sold in Q2FY07 increased to 8.27 lakh kgs. from 1.89 lakh kgs. in Q2FY06.
• Cotton yarn sales volumes were higher in Q2FY07 at 13.37 lakh kgs compared to 6.94 lakh kgs y-o-y. Export cotton price realization increased by 16.2% to Rs.112.71 per kg while the domestic cotton price realization increased by 10.2% to Rs. 114.02. As a result, per unit contribution was higher in Q2FY07, leading to higher margins.
• Synthetic yarn sales volumes were lower in Q2FY06 compared to the corresponding period last year. However, revenues from this segment remained the same on account of higher realizations.
• Capacity utilization was at 95% this quarter.

Source : Equity Bulls

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