India: Sanghi Industries has posted a 234% increase in net profit to US$7.65m for the third quarter of its 2012 – 2013 financial year, compared to US$2.28m for the same period in 2011 – 2012. Net sales remained stable at US$54.4m.
For the financial year to date, profit after tax rose to US$14.9m in 2012 – 2013 from a loss of US$3.98m in 2011 – 2012. Net sales rose by 17.3% to US$146m from US$124m.
Commenting on the financial performance of the company, director Alok Sanghi said that the company's strategy of diversifying sales to markets in Maharashtra and Rajasthan outside of its core market of Gujarat had begun to pay off as the company operated at near full capacity. Additional cost saving measures such as debt reduction, higher captive power generation and increasing utilisation of cheaper sea route for transport of cement had further boosted profit margins.