Highlights of the call are:

• The company has reported modest results in the quarter ended December 2010 with 41% increase in the Net Profit at Rs 10.61 crore over 38% increase in the total income from Operations at Rs 190.59 crore in the quarter ended December 2010. The Operating margins improved by 70 bps to 17.8% and drived the growth in the profitability. The company has reported forex gain of Rs 0.18 crore over Rs 1.25 crore in the corresponding previous year, down by 86% on y-o-y basis.
• The revenue break up during the quarter was as follows: Yarn 42% of total revenues, Fabric 42%, Garments 11% and Misc 5%. Price hike during the quarter was to the tune of 10-12%.
• Export revenues constitute 62% of the total revenues in the quarter under review and 65% for the 9MFY11, respectively.
• In general, the company exports 1/3^rd of its total yarn production, 1/3^rd is sold in domestic market and remaining 1/3^rd are converted to fabric. Of the total fabric produced, 25% is sold in local market, 5-10% is for internal use and remaining 65% is exported. The company exports only 25% of garments and focuses more on the domestic market.
• The company has successfully completed order for Army and has recently received the second order from them. The revenues from technical textiles are expected to surge to Rs 20-30 crore in FY12 and to Rs 100 crore in FY13.
• The D: E ratio is higher at 1.75 and the company plans it to bring down to 1.15. The term loans stood at Rs 330 crore and Working capital loans stands at Rs 225 crore at end of December 2010. All the loans are under TUFS.
• The order book of the company for fabric and garments has been booked till June 2011. With volatility in the prices of yarn and fabric in last 3-4 months, the order book is susceptible to the sharp spike in the Raw material prices. The company is now building up strategy for booking orders in order by order so that the price hike is fully passed on. The order booking from January 2011 started with further increase in realization by 10-12%.
• The capex for FY12 would be Rs 50 crore and Rs 30 crore for FY13.
• Second unit of Coal based Thermal Power Plant is likely to commence with effect from February, 2011.
• Expects to clock turnover of Rs 800 crore by end of FY11 and Rs 1200 crore by end of FY12.