Bannariamman spinning mills

CMP...86

Bannari Amman Spinning Mills Limited, established in 1995 has a capacity of more than 140,000 spindles. The mill has a complete range of state of the art spinning equipment including Lakshmi Rieter Spinning machinery from Blow room to Spinning departments, Schlafhorst-338 model autoconers for yarn production.

The latest generation of Blow Room lines connected to the cards with Chute Feed System, Auto Leveller Draw Frames and Spinning Frames with Ring Data System, Blow Room, Cards and Combers fitted with automatic waste collection systems are available.

The product range includes Ne 20/1, Ne 24/1, Ne 34/1 & Ne 40/1 combed and carded knitting cotton yarn and caters to Tirupur, Calcutta & Kanpur markets. The mill exports 24% of the production to Israel, Mauritius, Egypt, Taiwan and South Korea.

The company has a Weaving Division with specialized looms for ultra fine count wide width fabric for home furnishings and jumbo looms for industrial textiles. The spinnning Mill has a manufacturer unit for bed linen, Mattress protector, Pillow protector and more products. The Technical textile division of the company consists of a Coating division and a Lamination division.

The company has 4 windmills of 1250 KW each totaling 5MW in Radhapuram
Taluk, Tirunelveli District, Tamilnadu, 25 Nos windmills, each of 800
KW capacity totaling 20 MW capacity in Dharapuram Taluk, Tirupur
District and Palani Taluk, Dindigul District, Tamilnadu and 3 Windmills
of 1650 KW each in Kongalnagaram, Udumalpet Taluk, Tirupur District,
Tamilnadu. The total installed capacity of Windmills is 29.95 MW and
the whole of the power generated is captively consumed by the Spinning
Units.

The windmills produced 528.55 Lakh units of wind energy as against
563.67 lakh units produced in the last year.

FINANACIALS:

Sales have increased from 200 cr to 549 cr during 2008 to 2011 and NP also increased from 11cr to 39 cr, but the company suffered a decline in sales to 459 cr from 549 cr and incurred a loss of 16.38 cr during the FY 2012 due to volatyile raw materieal prices , severe power cuts and higher interest costs.

Yet the performance during the first half is satisfactory as it recorded a turnover of 270 cr and a Np of 18 cr .EPS for the 1st half year of 2013 stands at 11.40.If the trend continues the company may post excellent results for the full year Mar 2013.The hope of lower interest rates in the next policy may be advantageous to this company. The D/E ratio has come down from 2.47 in 2011 to 1.85 at the end of FY 2012.

The scrip could be added at the CMP of 86 in the portfolio.