Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its textile division comprising yarn and home textiles. The amount will be used for purchasing machines in yarn division, setting up a windmill project, buying looms and increasing processing capacity. For July-September 2016, GHCL’s net profit increased by 79.09 per cent to Rs 90.28 crore.
“The Board of Directors of the company at its meeting held on October 21, 2016, inter alia, has approved the additional capex of Rs 67.25 crores for textile division (yarn and home textiles), which will be used towards
(i) purchase of TFO machines in the yarn division,
(ii) 2.1 MW windmill project in home textile division;
(iii) purchase of looms for weaving project of home textile division; and
(iv) increase in processing capacity of home textile division,” GHCL said in a filing to the BSE.
GHCL has also released its financial statement for July-September quarter. Its net profit stood at Rs 90.28 crore, registering an increase of 79.09 per cent over net profit of Rs 50.41 crore in the corresponding quarter of previous year.
The company’s income from operations during the quarter grew by 1.85 per cent to Rs 703.14 crore as against Rs 690.34 crore in the year-ago period.
GHCL’s home textiles business grew by 7.75 per cent to Rs 298.47 crore.
“During the present quarter, we had a good financial performance on the back of improved efficiency, lower utility costs and better capacity utilisation leading to strong growth in the bottom lines for us… We continue to witness strong growth in our home textiles business,” GHCL Managing Director RS Jalan said.
Source: fibre2fashion
