Gujarat's leading cement company, Sanghi Industries Limited, reported a net profit of Rs. 18.18 crore for the first quarter ended September 30, 2012 as against a net loss of Rs. 37.35 crore in Q1 of previous fiscal. Net sales rose by 37% to Rs. 213.31 crore in current year's Q1 as against Rs. 155.60 crore for the previous year's Q1. The earnings per share (EPS) for Q1 stood at Rs. 0.83 as against a negative EPS of Rs. 1.70 in previous Q1.
Commenting on the financial performance of the company, Mr. Alok Sanghi, Director of Sanghi Industries Ltd. said, "Our focus on controlling all manufacturing and financing costs are continuing to pay off and the Q1 net profit for 2012-13 is back in the black as against a net loss in the previous year's Q1. The EBIDTA margin has shot up to 24% in current Q1 as against 7% in the previous Q1. We are also repaying part of our debt so as to reduce the financing cost. We will continue to improve our performance in the coming quarters."
In the first week of November 2012, the promoters of Sanghi Industries raised their shareholding in the company to 60.5% from around 56% after purchasing a 4.5% stake through a bulk purchase deal with a foreign investor, Spinnaker Global Strategic Fund Ltd. While the first deal was valued at Rs. 17.66 crore, the second was Rs. 8 crore, with the total transaction value being Rs. 25.66 crore. The per share acquisition price for Sanghi Industries' promoter group was Rs. 22.70.
For the full year ended June 30, 2012 Sanghi Industries reported a net profit of Rs. 81.87 crore as against a loss of Rs. 29.55 crore in the previous fiscal. Net sales rose by 8.3% to Rs. 974.07 crore in 2011-12 as against Rs. 899.48 crore in previous year, which was a period of 15 months. The earnings per share (EPS) for 2011-12 stood at Rs. 3.72 as against a negative EPS of Rs. 1.34 in the previous accounting year of 15 months.