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Super Spinning

Despite a 24 per cent jump in net sales/operative income, Super Spinning Mills Ltd has managed to close the second quarter ending September 30, 2001 with a net profit of Rs1.26 crore as against Rs1.20 crore realised for the same period in 2000.

The sales income during the quarter has shot to Rs 60.28 crore compared to Rs 48.51 crore for the same period last year.

Its net profit as a percentage to sale has, however, stood at 2.09 per cent as against 2.47 per cent last year. The raw material cost incurred by the company during the quarter works out to Rs 28.45 crore as against last years Rs 23.18 crore.

The audited financial results for the second quarter 2001-2002 released on Monday revealed that the company had incurred marginally higher costs on labour at Rs 4.62 crore (Rs 3.98 crore) and power at Rs 6.87 crore (Rs 6.47 crore). While its interest cha rges stood lower at Rs 2.64 crore (Rs 2.78 crore), the depreciation claim was higher at Rs 3.71 crore (Rs 3.27 crore). Its profit-before-tax being higher at Rs1.56 crore (Rs1.45 crore), it has allowed a Rs 30 lakh provision for tax as against Rs 25 lakh last year.

The strain on the profit margin of the company, it is said, is largely on account of hardened price realisation for the textile products, which is down by 10 to 15 per cent. -- Our Bureau