Alps Industries to expand capacities

2180 Investors following Alps Industries. Share this News with them.

0

Like this story, share it with millions of investors on M3

Alps Industries to expand capacities

Alps Industries will be expanding spinning, weaving, processing, fabrication capacities. Sandeep Agarwal, Managing Director of Alps Industries says that For FY08 the revenues will be somewhere in the region of Rs 700-750 crore. He adds that the net profit margins have been in the region of 8% and they hope to maintain that.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS Alps Industries to double turnover in 2 years Alps Industries Q3 sales surges 65% to Rs 114cr ALSO READ See latest News about Alps Industries See previous management interviews See what other Experts & Brokerages are saying about Alps Industries Alps Industries BSE | NSE 31/05/12 Are Mutual Funds betting on Alps Industries?

Alps Industries will be expanding spinning, weaving, processing, fabrication capacities.

Sandeep Agarwal, Managing Director of Alps Industries says that for FY08,  the revenues will be somewhere in the region of Rs 700-750 crore. He adds that the net profit margins have been in the region of 8% and they hope to maintain that.

Excerpts from CNBC-TV18's exclusive interview with Sandeep Agarwal:

Q: You have an expansion of about 400 crore lined up for the next 18 months. When will the entire capacity roll out and trickle in and how much of a benefit will it bring to your revenues?

A: The expansion that is under implementation is scheduled to come in for operations within the current calendar year, which is a good 6-7 months ahead of its scheduled startup in July 2008.

Q: How much of a capacity enhancement?

A: The spinning expansion will be about 58 tonnes per day whereas capacity and weaving expansion, will add about 8 million square meters of weaving capacities to our facilities. Our existing capacities in yarn spinning are 97 tonnes per day and about 19.04 million square meters of fabrics every year.

Q: Once all theis expansion comes on board, how much will you close your 2008 in terms of revenue profits and earnings per share?

A: For FY08 we have already given the indication of somewhere in the region of Rs 700-750 crore. That is very much on track.

Q: On earnings per share how much would you do for 2008?

A: Net profit margins have been in the region of 8%, which we hope to maintain.

Q: Are you looking to hold margins around the 15-16% even after your capacity expansion comes on stream or would you hope to better it?

A: At the moment considering the kind of cotton prices and the yarn prices  we expect to maintain the prices at the margins.

Q: How are you looking at funding this expansion?

A: This expansion is already being funded. In fact we completed the financial closure of it sometime in January. The total cost of the project is estimated at about Rs 400 crore out of which Rs 300 crore is coming by way of term loans all sanctioned under TUF (Technology Upgradation Fund ) and Rs 100 is coming out of the internal resources of the company. The company has made a GDR issue in March 2006 and the proceeds from that GDR issue, coupled with the additional internal accruals of the company will be funding the company's share in the expansion.