YnFx Textile Report: Sangam (India) Q1FY08 Net Sales up 36 % at Rs. 150.54 crore

Mumbai, August 9, 2007 - Sangam (India) Ltd., one of the largest polyester-viscose dyed yarn manufacturers in India, today announced its un-audited results for the first quarter ended June 30, 2007.

Q1FY08 Performance Update
During the quarter, Net Sales / Income from operations increased by 36.30 per cent rise to Rs 150.54 crore for the first quarter ended June 30, 2007 as compared to Rs 110.47 crore in the corresponding quarter previous year.

The Exports zoomed by 62% to Rs 43.20 crore (Q1FY08) from Rs 26.70 crore (Q1FY07).The Net realization of per kg of yarn in increased from Rs.125 per kg to Rs. 130 per kg, but realization in fabrics division has been increased substantially from Rs. 64 to Rs 79 per meter.

The company witnessed a significant improvement in operating profits on account of higher contributions from the fabric division. EBITDA for Q1FY08 was Rs. 23.29 crore as against Rs. 19.21 crore in Q1FY07; registering a growth of 21.24 percent.

The company’s net profit during the quarter ending June 30, 2007 was affected due to rupee appreciation and rising interest rates. Also, higher depreciation costs increased on account of the on-going expansion plans affected the company’s performance. Net Profit for the quarter ended June 30, 2007 stood at Rs. 6.51 crore resulting in an EPS (Basic & Diluted) of Rs. 1.65 as against the Net Profit of Rs. 7.22 crore and EPS (Basic & Diluted) of Rs. 1.96 for the corresponding quarter last year. However, the Cash EPS amounted to Rs. 4.20 in comparison to Rs. 4.27 during the corresponding quarter last year. The share capital of Sangam India has increased by Rs 50 millions.

Update on Expansion Plan
The company is executing Expansion & Diversification Project having an aggregate outlay of Rs. 707 crores in which installation of 1,47,552 Spindles, 140 Weaving Machines, 12 Knitting Machines, Captive Power Plant of 21 MW and a Modern Process House have been envisaged.

The company has commissioned 66,912 Spindles, 90 Weaving Machines, 12 Knitting Machines have already been installed upto 31st March 2007, the full impact of which will be reflected in the current year. . During the quarter, the company has installed 20,000 spindles and 20 weaving machines which will start commercial production from Q2FY08. The company expects to add another 30,000 spindles by Q2FY08. The work of installation of remaining part of the project is progressing as per schedule. The installation of Captive Thermal Power Plant is nearing completion.

Outlook
Mr R. P. Soni, Chairman, said, “Going forward Sangam will benefit from the reduction in the power costs due to 100% captive power consumption. We will improve our efficiencies by better quality of power, which will enhance our utilisation rates. The contribution of earnings in the fabric division should also lead to better profitability. Supply Agreement with Riopele Texteis is encouraging and the company believes that it should be in a position to make sizeable contribution to net sales in the coming quarters.”

Update on Supply Agreement with Riopele Texteis
During the quarter, Sangam India had announced the supply agreement with Riopele Texteis, Portugal.
Under the agreement, Riopele Texteis will outsource high value added polyester viscose bi-stretch lycra fabrics from Sangam (India). In turn, Sangam (India) will outsource technical expertise and designing pattern fromRiopele Texteis S.A. Initially, the agreement will be for period of one year and subsequently renewed mutually based on performance.

Order Book Position
The company’s products have been accepted swiftly in domestic & global markets The company has strong order book position of Rs 130 crore out of which Rs 65 crore from overseas markets.

About Sangam India Limited
(Reuters Code: SANG.BO; BLOOMBERG: SNGM@IN; BSE Scrip Code: 514234)
Promoted by first-generation entrepreneurs R P Soni and S N Modani, Sangam (India) is one of the largest manufacturers of polyester dyed yarn in the country. At present, Sangam India has 100,320 spindles of polyester-viscose dyed yarn and 31200 spindle on Cotton Yarn installed in Bhilwara along with 237 weaving machines and a 10 MW thermal power plant. The company also has strong presence in the Indian synthetic blended fabric segment with brands like Anmol and Sangam. The company has an established client base, like Reliance, BSL, Skumars, Reid & Taylor, Siyaram and Grasim. Its fabric is marketed through a network of 100 dealers and 1000 retailers.

Additional information is available at the Company's website at www.sangamgroup.com


For further information contact:
Adfactors PR, Mumbai Sangam (India), Mumbai
Rakesh Sharma / Girish Gangawat L L Soni
Tel: 91-22-22813565 Cell: 9869011418 / 9867651000

About YarnsandFibers.com
YarnsandFibers.com is leading provider of Textile Market Intelligence and Market Development. The YnFx member community comprises of Yarn Manufacturers, Spinners, Weavers, Traders, Knitters, from across 150 countries. We regularly publish in-depth reports, daily global textile news and press releases on the Textile Industry. You may contact us at +91 22 66291050 to know more about the company and activities.