A 23 per cent year over hike in total expenses knocked down net profit by 41.55 per cent from a year earlier quarter at textiles major Vardhman Textiles Ltd.
In a BSE filing, the SP Oswal led Vardhman Textiles said its net profit slid massively by 41.55 per cent year over year to Rs 90.20 crore in the fourth fiscal quarter ended March 31, 2015.A 23 per cent year over hike in total expenses knocked down net profit by 41.55 per cent from a year earlier quarter at textiles major Vardhman#
Led by depreciation and amortisation expenses which surged 54.77 per cent to Rs 132.30 crore, total expenses too rose steeply to Rs 1,281.76 crore, a jump of 23 per cent from the prior fiscal fourth quarter.
Total expenses also rose on account of other expenses which soared 22.42 per cent to Rs 179.66 crore, while cost of material consumed fell 8 per cent to Rs 654.99 crore in the reporting quarter.
Driven by a 310 per cent hike in other operating income at Rs 40.95 crore, Vardhman recorded total income from operations at Rs 1,448.74 crore, up 12.11 per cent year over year in the fourth quarter of fiscal 2015.
Profit before other income, finance costs and exceptional income too dipped to Rs 166.98 crore in the quarter under review from Rs 250.10 crore, down a massive 33.22 per cent.
Profits were also down at Vardhman Textiles in the fourth quarter of fiscal 2015 despite finance costs tumbling down 35.34 per cent to Rs 28.63 crore from Rs 44.28 crore from a year ago quarter.
Consequently pretax profits also took a hit and slipped down 32.77 per cent at Rs 138.36 crore from Rs 205.82 crore in the quarter ended March 31, 2014.
Tax expense too was down to Rs 48.16 crore in the quarter ending March 31, 2015 from Rs 51.50 crore in the prior fiscal fourth quarter, also down 6.48 per cent
Vardhman Textiles board of directors at a meeting held on May 08, 2015, inter alia, has recommended a dividend of Rs 10 per share on fully paid up equity shares.
According to the BSE filing, this dividend shall be paid tentatively by the end of September, 2015. (AR)
Fibre2fashion News Desk - India
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