New Delhi, Delhi, India
-- Company's spinning and soda ash capacity expansion project progressing as per schedule.
-- Company's 36 Million Meters Home Textiles Project at Vapi has been commissioned and commercial production started. The company is successfully integrating textile operations in India with our overseas US operations, which is seen as one of the unique models and covers all the value chains.
-- Apart from benefit of price increase in Soda ash in the quarter, the results reflect continued strong operational performance in both soda ash & textile division.
-- Expansion of domestic soda ash capacities & Home textiles turnaround of Dan River on track.
-- Romania Operations increase efficiencies by 30 % and per day production getting stabilized at an increased capacity of 650 Tones from previous 500 tons per day. Reduction of Variable cost of $ 4 per ton already achieved. Improvement in operating parameters in all processes and Utility areas & Investments for capacity expansion and further operational improvements started
-- Declares a dividend of 24% for the period ended December 31, 2005 (9 months)
GHCL Limited, India's leading producer of soda ash today announced its results for Quarter ending March 31, 2006.
Results overview Quarter Ended March 2006 Vs Quarter Ended March 2005: The Company has posted a strong financial performance for Quarter Ended March 2006
Net Sales/Income from operations increased by 17% to Rs.175 Crores from Rs.150 Crores reported in the corresponding quarter.
The PBDIT in the present quarter increased 21% to Rs. 51 Crores from Rs. 43 Crores.
The Profit After Tax has increased by 36% in the present quarter to Rs. 28 Crores from Rs.21 Crores reported in the quarter ended March 2005.
EPS for the quarter is at Rs. 2.96.
-- The integration of the acquired Soda ash capacity in Romania & Dan River, Leading US home textile player and domestic spinning and soda ash capacity expansion project is going as per the schedule. Company's Home Textiles Project at Vapi has been commissioned and commercial production started. The company is successfully integrating textile operations in India with our overseas US operations, which is seen as one of the unique models and covers all the value chains.
Commenting on the performance for Q1FY2006 ended March 2006, Mr. Sanjay Dalmia, Chairman, GHCL Limited, said, "We have had a successful quarter, where our revenues have been driven by volume growth both in the soda ash and textiles segment with better earnings through improved productivity.
GHCL looks forward to a healthy growth through the back of successful integration of our overseas-acquired capacities and the current domestic expansion.
We are sensing an attractive business opportunity with global reach and our strength to replicate the Indian success of being the lowest cost producer of soda ash to overseas locations as well.
We recorded higher levels of efficiencies, which are sustainable, and our business model has been structured to produce more at relatively lower levels of fixed and variable costs. Given the strength of our operations and encouraging levels of customer demand, we remain positive on the performance outlook going forward."
About GHCL
GHCL, a multi product progressive organization, is a part of the eminent and reputed Dalmia Group.
The company, through its oversees subsidiary has acquired a majority stake in S.C. Bega Upsom S.A.- a leading soda ash manufacturer in Romania and has also signed a definitive agreement to acquire the second and only other plant in Romania thereby set to increase its capacity to 7,00,000 MTPA capacity.
GHCL is already implementing its increase in soda ash capacity from 6,00,000 MTPA to 11,00,000 MTPA in Its Indian plant at Gujarat, achieving the leadership position in the domestic soda ash market.
GHCL Limited, through its oversees subsidiary also had acquired Dan River, a leading player in the Home Textile markets with an annual turnover of US$ 250 Million. Dan River has a wide sales & distribution network catering to the largest retailers and a formidable supplier to large retailers like JC Penny, Linen & Things, Wal-mart and Bed, Bath & Beyond.
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Nikhil Sen, GHCL Limited, +919810618668
Source: GHCL Limited (Business Wire India)
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