Alok Industries sees robust growth in core business

Alok Industries is on an upward growth path, despite slowdown in the textile sector and its Q3 FY13 results were above CRISIL Research’s expectations, which had predicted that with local procurement of fabric expected to decline, Alok Industries will register moderate growth. However, domestic revenues increased 75% y-o-y, driven by the fabric business, while export revenues decreased 9% y-o-y. Total revenues grew by 47.5% y-o-y to Rs. 35.2 billion mainly due to an increase in sales of fabric procured from local job workers and sold under Alok brand name. The domestic business’ revenues jumped 75% y-o-y to Rs. 28 billion (80% of total revenues). Revenues from apparel fabric more than doubled y-o-y to Rs. 22 billion, while the home textile and polyester segments’ revenues remained flat compared to Q3 FY12.