The bottom line of textile mills has improved substantially compared to last year levels as per third quarter results of 2005-06, indicating a boom in the textile sector.
A jump of 249 percent has been reported by Vardhman Polytex, Abhisekh Industries recorded 222 percent increase, GHCL's net profit reached 259 percent and Banswara Syntex's profit went up by over 224 percent in third quarter of the present year in comparison to the same period previous year.
S Kumars, has improved its performance with net profit of Rs 25.79 crore in third quarter of 2005-06 in comparison to a loss of Rs 5.82 crore incurred in the same quarter last year.
Winsome Textile Industries too improved on its performance recording a profit of Rs 0.95 crore in the third quarter to a net loss of Rs 0.33 crore which it had earlier recorded in third quarter of corresponding year.
The similar trend is expected to continue for other companies in the third quarter, which is to be announced later.
The encouraging performance of textile companies has been due to cancellation of textile quota systems, restrictions on import by the US and EU on garments of China and financial incentives along with technology improvement in textile sector.
This trend is expected to accelerate in the next fiscal.
This asumption is based on the expectation of reducing of customs duty by 10 percent and excise by 8 percent in MMF during budget of 2006.
MMF segment constitutes 40 percent of total textile production, said D K Nair, Secretary General, Confederation of Indian Textile Industry.
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