• Q2 profit of INR917m versus INR1.78bn
  • Sales grow 16.3% to INR14.88bn
  • EBITDA margin falls to 17.6%

Indian yarn manufacturer Vardhman Textiles has seen its second-quarter profit plummet 48.4% after sales growth was offset by lower margins.

Net profit amounted to INR917m (US$14.8m) for the three months to 30 September, compared to INR1.78bn in the same period of last year.

Net sales increased 16.3% to INR14.88bn from INR12.80bn a year ago, thanks to capacity expansions in yarn and fabric businesses.

EBITDA margin fell to 17.6% from 27.1%, due to higher cotton prices in India and lower prices of yarn because of lower exports of cotton yarn from the country.