Chandigarh: Vardhman Group today has reported its net profit at Rs138.06 crore for the quarter ended on 31 March 2008, showing a decline of 27% over the corresponding period last year.
The net profit stood at Rs189.97 crore for the reviewed period during last fiscal.
“The net profit has come down on account of higher depreciation and interest cost arising out of capacity expansion programme being undertaken,” Vardhman Textiles President D L Sharma said.
The depreciation and interest cost of the group have risen to Rs162.02 crore and Rs65.84 crore as on March 2008, respectively from Rs122.41 crore and Rs38.34 crore in last fiscal.
In addition to it, the consistent rise in rupee appreciation against US dollar also adversely impacted the company’s margins. “The affect of rising rupee has also been visible which put pressure on our profitability,” he said.
However, the total sales of the company has shot up to Rs2,387.74 crore as on March 2008 against last year’s turnover of Rs2,162.13 crore, posting a growth of 10.40%.
The board meeting declared company’s consolidated financial results in its meeting held yesterday evening. The consolidated financial results include result of all its subsidiaries Vardhman Acrylics Ltd, VMT Spinning Co Ltd, Vardhman Threads Ltd, Vardhman Yarns and Threads Ltd and its associate Vardhman Textile Components Ltd.