Kerala State Textiles Corp successful in turning around
20 Apr '06
1 min read
Kerala State Textile Corporation has been able to effect a turnaround for the first time in more than 15 years recording a net profit of Rs 2.78 crore during 2005-06.
This achievement has been a record of the sort for the company, said Jacob Joseph, Chairman and Managing Director.
The company had posted a net loss of Rs 2.31 crore the previous year.
Operating profit of Rs 6.1 crore and a cash profit of Rs 4.62 crore for 2005-06 were also record figures.
Revenues have gone up 7 percent from Rs 35.74 crore of previous year to Rs 38.01 crore of the present year, after providing for Rs 1.84 crore in depreciation and Rs.1.48 crore in interest payments.
The extra-ordinary performance was possible due to lowering of raw material costs from 51.11 percent to 40.06 percent, said Joseph.
Labour expenditure was brought down from 18.36 percent to 17.81 percent and electricity overheads from 18.03 percent to 16.62 percent.
This was possible due to thrust on professional management practices and bringing transparency and accountability into raw material and spare part purchases.
The company now plans to achieve a net profit of Rs 5 crore during current financial year.
marketing@alchempro.com
