Gujarat-based cement manufacturer Sanghi Industries Ltd's net profit for the second quarter of the fiscal ending December 31, 2012 grew seven-fold to Rs 21.6 crore from Rs 3 crore in the corresponding quarter last fiscal, a jump of 615 per cent mainly on the back of lower interest payment.
During the quarter the company's turnover grew 26 per cent to Rs 286.3 crore, up from Rs 227.1 crore in the same period last year. The company's interest payment fell to Rs 6.8 crore in the current quarter as against Rs 22 crore in the corresponding quarter of last year, which actually resulted in higher profitability,Sanghi Industries said in a statement here. The company follows a July-June fiscal year.
Alok Sanghi, Director of Sanghi Industries said, "The Company is focusing on reducing transportation costs and energy costs, which is not only helping in earning profit, but also improving margins. Also with debt reduction for the current fiscal on target, interest burden is being lowered, which is further helping the company in boosting profits."
For the first half, company's sales rose by 31 per cent to Rs 499.7 crore against Rs 382.7 crore in the previous year.
Net profit during the period stood at Rs 39.8 crore against net loss of Rs 34.3 crore in the corresponding period last year.