Rajapalayam Mills Reported Two-Fold Jump in Its Net Profit, Which Stood at RS 19.30 Crore

At a time when textile mills in other parts of the state and the rest of the country are pulling down their shutters for one reason or the other, Tamil Nadu-based yarn manufacturer Rajapalayam Mills has posted robust growth in profitability in the first half of the current financial year 2013-14, driven by higher sales revenue.

Rajapalayam Mills, a part of renowned Ramco Group, reported over two-fold jump in its net profit for the six month ended September 30, 2013, which stood at Rs 19.30 crore against Rs 9.21 crore in the previous year, mainly on account of robust sales in textile segment.

During the six months under review, the company's net sales rose by 25.24 per cent to Rs 208.75 crore as against Rs 165.72 crore in the year-earlier period.

Sales revenue  from the textile segment which includes ring yarn, compact yarn, elitwist compact yarn, TFO doubled yarn, gassed yarn, slub & multicount yarn, model / tencel yarn, oe yarn and organic cotton yarn, was driven by higher demand from emerging and developed nations.

However, rising power and fuel charges, acute shortage of power and labour remained a key challenge for the company. The power and fuel charges increased to Rs 17.56 crore as compared to Rs 14.30 crore in previous year.

Given the optimistic and promising future ahead, the company believes that it is well equipped and armored to face them in the fray to establish its supremacy and excel them in all aspects.