India: Stovec’s net profit grows 80% in Q2

Company Performance

India: Stovec’s net profit grows 80% in Q2

Stovec Industries Ltd, established by Stork Prints B.V. the Netherlands, in India, has posted a strong growth of 79.86% during the quarter July-September, 2013-14. Net profit amounted to Rs 35.72 million (Rs 19.86 million) during the period. The company’s half yearly net profit, also witnessed a robust growth of 69.59%, to Rs 81.09 million (Rs 47.81 million), till September, 2013.

During the second quarter of this financial year, the company’s net sales, at Rs 216.99 million (Rs 167.61 million), recorded an increase of 29.46%. Q2 net sales were 37% higher than sales in the first quarter of the financial year. Net profit in the second quarter was 43.8% higher than profit of Rs 24.84 million in the first quarter of this fiscal year.

Stovec’s textile machinery and consumables business continued to expand in the second quarter, with PBT at Rs 44.63 million, a growth of 54.39% compared to the corresponding quarter of the previous fiscal. Compared to PBT of Rs 37.65 million during April-June, 2013, Q2 profit rose 18.53%. Net sales during Q2 at Rs 192.29 million are 36% higher than in the corresponding quarter, and 23.9% higher than in the last quarter.

The company maintained its growth trajectory despite many obstacles – a weak rupee which made machine imports costlier, especially without the Technology Upgradation Fund Scheme, for the textile industry.