ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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ITC CLASSIC FINANCE-International Dimension

EPW Research Foundation SREE MEENAKSHI MILLS High Raw Material Cost SREE MEENAKSHI MILLS, which had accumulated losses of up to Rs 5.4 crore, has managed to turn around in 1992-93 by posting a net profit of Rs 50 lakh on a 14.5 per cent higher net sales. The company's operating profit more than trebled over the previous year and a smaller rise in interest and depreciation charges enabled it to post a profit during the year. However the company's margins remain at a low level with the textile industry going through a difficult phase. The fall in the cotton crop as compared to earlier estimates and exports of cotton coupled with' an increase in consumption with increased spindleage in the industry as a whole led to a sharp rise in cotton prices which ruled high from February to November 1992. The company claims that its performance could have been better but for the slump in the domestic and international markets up to October 1992 and the high raw material cost which could not be absorbed by the yarn market. The hike in energy cost and wages in addition to the overall increase in input casts Adversely affected the company's margins.

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