Sanghi Industries Ltd has posted a 234 per cent jump in net profit as the Gujarat-based producer increases its geographical sales spread and implements a number of cost-saving measures.
Net profit for the third quarter ended 31 March 2013 reached INR419m compared to INR125m for the same quarter in previous financial year. Net sales in the 3QFY12-13 were INR2981m, almost on a par with the INR2971m recording in the 3Q of the previous year.
For the nine months of current financial year, profit after tax rose to INR815.9m against a net loss of INR218m in the corresponding period of the previous year. Revenue for the nine months was up 17.3 per cent at INR7977m compared to INR6800m in 9MFY11-12.
Commenting on the financial performance of the company, Alok Sanghi, Director of Sanghi Industries Ltd, said: “Our strategy of diversifying sales to markets in Maharashtra and Rajasthan and not depending entirely on Gujarat has begun to pay off as we are able to operate at near full capacity and thus derive higher profit margins. Additionally, cost saving measures like debt reduction, higher captive power generation and increasing utilisation of cheaper sea route for transport of cement have given a further boost to profit margins.”
