Nakoda Textile plans Rs 3,250-mn capex

Mumbai: Nakoda Textile Industries Ltd has planned a capital expenditure of Rs 325 crore for the coming year, said Mr Babubhai Jain, Chief Executive Officer and Managing Director.

As a part of capacity enhancement, a continuous polymerization plant of one lakh mtpa will be made operational by mid 2009 and an additional 70,000 mtpa capacity of POY spinning would be put in place.

“On implementation of the project, our dependence on outsourced polyester chips will be eliminated and we will be able to offer better value addition due to continuous polymerization,” said Mr Jain. The expansion would be funded through a mix of equity, internal accruals and debt, he added.

Meanwhile, the company posted a net profit of Rs 3.31 crore in the first quarter of 2008, up 62 per cent against Rs 2 crore during the same period last year.

Net sales for the first quarter rose by 65.8 per cent to Rs 190.74 crore (Rs 114.99 crore) for the same period last year.

The total income for the quarter was Rs 191.36 crore (Rs 115.44 crore) up 65.7 per cent.

The company’s scrip on the BSE closed at Rs 42.80 down 1.61 per cent as compared to the previous close of Rs 43.50.