TT Ltd. announced its Q2/H1 results recently, wherein riding the weak rupee, new capacities and good overseas demand, the company showed an increase over last year H1 of 118% in net profit and 55% in sales. The turnover for the first half is Rs. 351.44 crore and the PAT is Rs. 6.51 crore. The EPS is Rs. 3.03 (annualized Rs. 6.06). The Q2 turnover is Rs. 208.18 crore and PAT is Rs. 4.34 crore. As per Sanjay K Jain, Managing Director, normally the first half of the year isn’t very good as the cotton prices are higher due to end season and further demand is slow from overseas. However, this year the weaker rupee and strong yarn demand from China has helped the company show strong growth in sales and profits.
TT’s new spinning project in Rajula, Gujarat has started full commercial production and in the next quarter is expected to contribute substantially in terms of both profit and turnover. The interest cost in this project is nominal due to the 11% interest subsidy coming due to Central Government’s TUF scheme and the Gujarat Government’s Textile Policy. Last but not the least due to wind power generation in Tamil Nadu, and power purchase from IEX in Gujarat, the power costs have also been reasonably low.
