India: Rajapalayam Mills net profit up 109.55% in H1 2013-14

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South-based cotton yarn manufacturer, Rajapalayam Mills has earned a net profit of Rs 193 million during the half year ended September 30, 2013. This is a jump of 109.55%, compared to the company’s profits in the corresponding half year. In the second quarter of the financial year, the company’s net profit was Rs 122.9 million, rising 58.79% over the corresponding quarter of the previous fiscal year, and over 75% compared to the company’s net profit of Rs 70.1 million in the previous quarter.

Higher export earnings due to the rupee depreciation is one of the main reasons for the better performance in this quarter. The company’s power and fuel costs, during the first six months of the current fiscal have increased substantially to Rs 171.6 million, from Rs 126.7 million in the corresponding six months, a rise of 35.44%. The inconsistent power situation in Tamil Nadu, and the loss of supplies from wind energy this season, have resulted in high power costs for many textile mills in the state.

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