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Rubfila International , a market leader in latex threads which is primarily used in hosiery and adhesives reported highest ever quarterly sales in the June quarter. The company posted a turnover of Rs 31.34 crore, a jump of 21 percent over its same quarter last year. Net profit was down to Rs 3.14 crore against Rs 3.54 crore in the same period since the company earlier used to enjoy tax benefit on previous years losses.
The company also declared a dividend of 60 paise per share for the first time since its IPO in 1994.
“We will clock a turnover of Rs 135 crore in FY14 and around Rs 225 crore in FY15,” said Mr. Krishna Kumar, managing director at Rubfila International in an exclusive interview to moneycontrol.com
“The operating profit for FY14 will be around Rs 18 to 19 crore. However, the net profit will remain close to Rs 14-15 crore since the company will be paying tax this year,” he added.
Rubber and latex prices
“There is a huge difference in latex prices domestically and internationally. In domestic markets latex prices are quoting at Rs 170 per liter compared to Rs 103 per liter in the international markets. Monsoons have been pretty heavy in Kerala which led to poor availability of rubber and latex. We have already booked 500 tonne of latex internationally and planning to book another 200 tonne due to huge discrepancy in prices,” said Krishna Kumar. However, he clarified that this phenomena is temporary and the availability of rubber and latex will improve considerably in the third quarter of FY14.
The current installed capacity of latex threads is 10000 tonne and post onset of fourth line the capacity will jump to 13000 tonne. We expect the completion of the fourth line capacity in fourth quarter of FY14.
“Exports contributed 9 percent to total revenues in this quarter. We plan to boost it up to 25 percent by the end of FY14. However, the margins are better in domestic market compared to exports,” he said.
“Hosiery segment constitutes 85 percent of the total revenues while the remaining portion comes from Adhesives. We expect hosiery industry to grow at 12 percent this year,” he added.
“We have 40 percent market share in the domestic market. Currently Rubfila is a debt free company but we may look to raise capital in the future to meet our working capital requirements if required,” concluded Krishna Kumar