Driven by higher depreciation and amortization expense, net profit of Vardhman Textiles Ltd plunged 59.5 per cent year on year in third fiscal quarter ended December 31, 2014.
For the third quarter of fiscal 2015, Vardhman reported net profit of Rs 70.95 crore as against Rs 175.24 crore in the third quarter of fiscal 2014, down a massive 59.5 per cent.
At the same time, net sales for the reporting quarter grew under 1 per cent at Rs 1,429.11 crore from Rs 1,415.98 crore in corresponding quarter of previous fiscal year.
Total expenses at the textile major drove up 16.42 per cent from a year ago quarter to Rs 1,346.84 crore, driven by 71.5 per cent year on year surge in depreciation and amortisation expense.
Cost of materials consumed also rose 11.95 per cent to Rs 726.79 crore for the quarter under review compared to Rs 649.17 crore in the same quarter of last fiscal year.
Profit before finance cost & exceptional items also fell steeply by 56 per cent to Rs 120.52 crore as against Rs 274.37 crore in the prior fiscal year third quarter.
Vardhman said its profit before tax reached Rs 96.45 crore in the third quarter of fiscal 2015 from Rs 243.24 crore in the corresponding quarter of fiscal 2014.
Tax expense for the reporting quarter also rose by a massive 62.5 per cent to Rs 25.50 crore compared to Rs 68 crore in the earlier fiscal year third quarter.
In production of various products, Vardhman reported production of yarn stood at 49,132 ton in the third quarter of fiscal 2015 as against 42,801 tons in same quarter of last fiscal year.
Similarly, grey fabric output expanded to 43.9 million metres from 38.5 million metres and it processed fabrics totaling to 30.5 million metres compared to 28.3 million metres in the prior year third quarter.
The promoters holding in the company stood at 61.85 per cent, while institutions and non-institutions held 22.18 per cent and 15.97 per cent, respectively.
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