Alok Industries Ltd has announced a net profit of Rs 25.86 crore during Q3 2014. The company had earned a net profit of Rs 45.36 crore during Q2 2014, and of Rs 98.29 crore during Q3 2013. Net sales during Q3 2014 were to the tune of Rs 3571.74 crore, 4.62% lower than in the previous quarter. Net sales during Q3 2013 were at Rs 3686.20 crore. The company’s raw material costs during Q3 2014 at Rs 3608.98 crore were 26.4% higher than in the previous quarter, and 16.22% higher than in Q3 2013.
Alok Industries is burdened with inventories which accounted for as much as Rs 1252.45 crore during Q3 2014. Inventories during the previous quarter amounted to Rs 322.28 crore, and Rs 794.46 crore during Q3 2013. Continuously falling cotton and crude prices has led to this situation, as the market waits to place orders.