Alok Industries'' Q2 net up 28 per cent as fabric, garment sales surge

Mumbai: Textile and apparel manufacturer Alok Industries has reported a 28.2-per cent rise in fiscal second quarter profits at Rs32.64 crore from Rs25.46 crore the same quarter in the previous year.

Sales at Alok Industries, that counts Wal-Mart among its clients, rose 20.8 per cent to Rs41.7 crore from the same quarter a year ago. Total revenues, including other income rose by 20.1 per cent to Rs415.6 crore while exports surged by 44.9 per cent to Rs128.7 crore during the quarter.

Alok Industries said it is benefiting from an expanded product portfolio that includes bed linen and home textiles, garments and apparel fabric. The company is expanding capacity to make woven apparel fabrics by almost fourfold, knitted apparel fabrics by almost threefold and garment production capacity by eightfold.

The company recently signed an agreement with Mileta International (Mileta) of the Czech Republic to acquire a 60 per cent stake in that company, with a provision to acquire a further 19.6 per cent stake on mutually agreed terms.

The company expects to close the transaction worth Euro13.96 million in the next 3 months. The acquisition, however, is subject to financial and legal due diligences and regulatory approvals. Alok Industries plans to integrate Mileta`s operations within 12 months of acquisition.

Alok Industries, which has benefited immensely from the phasing out of textile export quotas, has formed alliances with overseas companies such as Portugal-based Teviz Textile Vizela SA. The company also has entered into an agreement with men's apparel manufacturer Teviz Textile to manufacture and market its products in India.