P E R F O R M A N C E R E P O R T First Quarter Ended · P E R F O R M A N C E R E P O R T First...

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PL

P E R F O R M A N C E R E P O R T

First Quarter Ended 30 June 2012

INNOVATIVE TEXTILE SOLUTIONS


END T

O EN

D SO

LUTION

S ACRO

SS TH

E VALUE C

HAIN

"Alok is an 'end-to-end' provider of Innovative Textile Solutions, with five core divisions: Cotton Yarn, Apparel Fabric, Home Textiles, Garments and Polyester Yarn

Alok's State of the Art Integrated Textile FacilitiesOUR

To be the world's best integrated textile enterprise, with a leadership position across products &

markets exceeding customer & stakeholder expectations

VISION

driven by research & innovation,

The barometer of our success would be the ROCE

OUR MISSION We will:?

?Maximize people development initiatives

?Optimize use of all resources

?Become a process driven organization

?Exceed compliance and global quality standards

?Actively explore potential market & products

?Offer innovative, customized and value added services to our customers

?Be an ethical, transparent and responsible global organization

Be a knowledge leader & an innovator in our businesses

TMInnovative Textile Solutions

Jacquard Terry Towel Loom Knitting

Spinning Airjet Weaving Loom


1Innovative Textile Solutions

PERFORMANCE HIGHLIGHTS

FINANCIAL HIGHLIGHTS: FOR THE QUARTER ENDED 30 JUNE 2012

Net Sales at ` 2,422.75 crore

An increase of 47.89% over quarter ended 30 June 2011 (` 1,638.19 crore)

Exports at ` 836.64 crore

Compared to ` 626.29 crore during Q1 2011-12: a growth of 33.59%

Operating EBIDTA at ` 759.26 crore

Growth of 63.50% over corresponding quarter in 2011-12 (` 464.37 crore)

Operating PBT (excluding extra-ordinary items) at ` 217.48 crore

An increase of 348.78% over Q1 2011-12 (` 48.46 crore)

PAT (including extra-ordinary items) at ` 30.07 crore

Exceptional provision of ̀ 172.96 crore on account of Mark to Market on foreign currency transactions

2 Performance Report Q1 2012-13

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2012

PART I

Statement of standalone Unaudited results for the year ended 30 June 2012 (` Crores)

PARTICULARS

QUARTER ENDED Year ended30.06.2012 (3 Months)(Reviewed)

31.03.2012 (3 Months)

(See note no 5 below)

30.06.2011 (3 Months)


31.03.2012 (12 Months)

(Audited)

1 Income from Operations a) Net Sales / Income from operations 2,422.75 2,595.38 1,638.19 8,900.86 Total Income from Operations (net) 2,422.75 2,595.38 1,638.19 8,900.86 2 Expenses a) Cost of Materials consumed 1,464.25 1,942.64 1,069.93 5,748.34 b) Purchase of stock-in-trade 20.01 20.00 6.52 161.45 c) Changesininventoriesoffinishedgoods,work-

in-progress and stock-in-trade (363.22) (551.84) (287.78) (1,516.66)

d) Employeesbenefitexpenses 73.18 65.45 59.07 267.28 e) Depreciation and Amortisation expense 213.37 173.59 169.41 713.43 f) Other Expenditure 479.30 390.35 334.84 1,681.30 Total Expenses 1,886.89 2,040.19 1,351.99 7,055.143 Profitfromoperationsbeforeotherincome,finance

costs and exceptional items 535.86 555.19 286.20 1,845.72

4 Other Income 10.03 8.66 8.76 65.60 5 Profit from ordinary activities

before finance costs and exceptional items 545.89 563.85 294.96 1,911.32

6 Finance Costs 328.41 334.60 246.50 1,149.55 7 Profit from ordinary activities after

finance costs but before exceptional items 217.48 229.25 48.46 761.77

8 Exceptional Items ( Refer note no. 3 ) (172.96) 227.56 18.47 (121.27)9 Profit from ordinary activities before tax 44.52 456.81 66.93 640.50

10 Tax expenses 14.45 173.31 7.97 259.9711 Net Profit 30.07 283.50 58.96 380.5312 Paid up Equity Share Capital (Face Value `10/- per

equity shares) 826.28 826.28 810.28 826.28

13 Reserves excluding revaluation reserves (As per Balance sheet of previous accounting year)

2829.22

14 Earnings per share (`) : Basic 0.36 * 3.48* 0.73* 4.69 Diluted 0.36* 3.48* 0.73* 4.69

* - Not annualised

See accompanying Notes

Part II

Selected information for the quarter ended 30.06.2012

PARTICULARS

QUARTER ENDED YEAR ENDED30.06.2012[3 Months]

(Reviewed)

31.03.2012[3 Months]


30.06.2011[3 Months]


31.03.2012[12 Months]

(Audited)

A PARTICULARS OF SHAREHOLDING 1 Public Shareholding - Number of shares 54,90,52,839 56,36,52,839 56,81,82,772 56,36,52,839 - Percentage of shareholding 66.45% 68.22% 70.12% 68.22%2 Promoters and Promoter Group Shareholding a) Pledged/Encumbered - Number of Shares 22,66,21,148 19,25,28,869 13,95,75,540 19,25,28,869 - Percentage of Shares (as a % of the total

shareholding of promoter and promoter group)

81.75% 73.31% 57.66% 73.31%

- Percentage of Shares (as a % of the total share capital of the Company)

27.43% 23.30% 17.23% 23.30%



UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2012 UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2012

PARTICULARS

QUARTER ENDED YEAR ENDED30.06.2012[3 Months]

(Reviewed)

31.03.2012[3 Months]


30.06.2011[3 Months]


31.03.2012[12 Months]

(Audited)

b) Non- encumbered - Number of Shares 5,05,95,370 7,00,87,649 10,25,11,045 7,00,87,649 - Percentage of Shares (as a % of the total

shareholding of promoter and promoter group 18.25% 26.69% 42.34% 26.69%

- Percentage of Shares (as a % of the total share capital of the Company)

6.12% 8.48% 12.65% 8.48%

B INVESTOR COMPLAINTS

Pending at the beginning of the quarter Nil Received during the quarter 20 Disposed off during the quarter 20 Remaining unresolved at the end of the quarter Nil

NOTES:

1 TheaboveunauditedfinancialresultsoftheCompanyforthequarterended30June2012,reviewedandrecommendedbytheAudit Committee, were taken on record by the Board of Directors of the Company at its meeting held on 13 August, 2012 and have been reviewed by the Statutory Auditors.

2 a) Thecompany,consideringitshighlevelofinternationaloperationsandpresentinternalfinancialreportingbasedongeographicallocationofcustomer,hasidentifiedgeographicalsegmentasitsprimarysegment.

The geographical segment consists of domestic sales and export sales. Revenue directly attributable to segments is reportedbasedonitemsthatareindividuallyidentifiabletothatsegment.Thecompanybelievesthatitisnotpracticalto allocate segment expenses, segment results, assets except debtors, used in the company's business or liabilities contracted since the resources/services/assets are used interchangeably within the segments. Accordingly, no disclosure relating to same is made.

PARTICULARS QUARTER ENDED YEAR ENDED30.06.2012[3 Months]

(Reviewed)

31.03.2012[3 Months]


30.06.2011[3 Months]


31.03.2012[12 Months]

(Audited)Segement Revenue Domestic 1,586.11 1,780.48 1,011.90 5,871.31 International 836.64 814.90 626.29 3,029.55

2,422.75 2,595.38 1,638.19 8,900.86 Sundry Debtors Domestic 1,877.09 1,799.53 1,420.55 1,799.53 International 318.04 352.62 239.27 352.62

2,195.13 2,152.15 1,659.82 2,152.15 b) TheCompanyhasidentifiedbusinesssegmentasitssecondarysegment.Thecompanyisoperatinginasinglebusiness

segment i.e. Textile and as such all business activities revolve around the segment. 3 Due to unusual depreciation in the value of Indian Rupee (INR) against US Dollar (USD) during the period, exchange loss/gain

arising out of a) restatement of foreign currency liabilities/assets and b) Mark to market (MTM) losses on foreign exchange derivatives taken by the Company has been presented as an exceptional item with corresponding changes for comparative periods.

4 The amalgamation of Grabal Alok Impex Limited (GAIL) into the company was completed on 1 March 2012 with effect from 1 April 2011, as per the terms and conditions mentioned in the Scheme of Amalgamation. 2,24,85,000 equity shares were issued to the shareholders of Grabal Alok Impex Ltd. Figures for the quarter ended June 2012, March 2012 and year ended March 2012includedfiguresofGrabalAlokImpexLimitedandEPShasbeenrestatedforsuchperiods.

5 Figuresforthequarterended31March2012arethebalancingfiguresbetweenauditedfiguresforthefullfinancialyearandthepublishedyeartodatefiguresuptothethirdquarterofthefinancialyearended31march2012andGrabalAlokImpexLtd,

6 Thefiguresofpreviousperiodshavebeenreclassified/regroupedwherevernecessarytocorrespondwiththoseofthecurrentperiod

By order of the BoardFor ALOK INDUSTRIES LIMITED

Sd/-

DILIP B. JIWRAJKAManaging Director

Place: Mumbai Date: 13 August 2012


Ratings

The company has been assigned the following credit ratings by CARE.

“CARE A” rating to the long term facilities. Instruments with this rating are considered to have adequatedegreeofsafetyregardingtimelyservicingoffinancialobligations.Suchinstrumentscarry low credit risk.

“CARE A1” rating to the Short Term facilities by CARE. This rating is applicable to facilities having tenure up to one year. Instruments with this rating are considered to have very strong degreeof safety regarding timelypaymentof financial obligations. Such instruments carrylowest credit risk.

Status of Real Estate Projects

Sold 8 out of 20 floors in TowerB of PeninsulaBusiness Park, Lower Parel,Mumbai. TheCompany has received token consideration and LOIs have been executed. Sale deeds should be signed soon against the full consideration as per LOI.

Sold3outof8floorsofAshfordCentre,LowerParel,Mumbai.Tokenconsiderationhavebeenreceived and the sale deeds are to be executed against full considerations.

The Company has sold 4500 sq. ft. out of 13500 sq. ft. held at Lotus Corporate Park, Goregaon, Mumbai.

"Tower B" Peninsula Business Park, Lower Parel, Mumbai

Ashford Centre, Lower Parel, Mumbai

KEY DEVELOPMENTS DURING THE QUARTER



FINANCIALS AT A GLANCE

PROFIT AND LOSS: FIRST QUARTER

(` Crore)

PROFIT & LOSS ACCOUNT Q/ENDED 30 JUNE 2012

Q/ENDED 30 JUNE 2011

% Change

% to Sales % to Sales

Domestic Sales 1,586.11 1,011.90 56.75%Export Sales 836.64 626.29 33.59%Net Sales 2,422.75 1,638.19 47.89%Other Income 10.03 8.76 14.49%TOTAL INCOME 2,432.78 1,646.95 47.71%

Material Costs 1,121.04 46.27% 788.67 48.14% 42.14%People Costs 73.18 3.02% 59.07 3.61% 23.88%Power and Fuel 179.24 7.40% 137.13 8.37% 30.71%Other Expenses 300.06 12.39% 197.71 12.07% 51.77%OPERATING EBIDTA 759.26 31.34% 464.37 28.35% 63.50%

Depreciation 213.37 8.81% 169.41 10.34% 25.95%OPERATING EBIT 545.89 22.53% 294.96 18.01% 85.07%

Interest & Finance Costs 328.41 13.56% 246.50 15.05% 33.23%OPERATING PBT 217.48 8.98% 48.46 2.96% 348.78%

Extraordinary Items: Net of Tax (172.96) 18.47 (1036.44%)Less: Provision for Taxes 14.45 0.60% 7.97 0.49% 81.30%PAT 30.07 1.24% 58.96 3.60% (49.00%)

1,638.19

2,422.75

0

500

1,000

1,500

2,000

2,500

30 JUNE 2011 30 JUNE 2012

` Cr

ore

Total Sales: YTD Q1

626.29

836.64

0

200

400

600

800

1,000

30 JUNE 2011 30 JUNE 2012

` Cr

ore

Export Sales: YTD Q1

464.37

759.26

0

200

400

600

800

30 JUNE 2011 30 JUNE 2012

EBIDTA: YTD Q1

` Cr

ore

58.96

0

15

30

45

60

75

30 JUNE 2011 30 JUNE 2012

` Cr

ore

PAT: YTD Q1

30.07


DIVISIONAL PERFORMANCE: FIRST QUARTER ENDED 30 JUNE 2012

PARTICULARS QUARTER ENDED 30 JUN 2012 QUARTER ENDED 30 JUN 2011 CHANGE

LOCA

L

EXP

OR

T

TO

TAL

% T

O

TO

TAL

SALE

S

LOCA

L

EXP

OR

T

TO

TAL

% T

O

TO

TAL

SALE

S

COTTON YARN 32.05 24.01 56.06 2.31% 28.95 14.15 43.10 2.62% 30.07%

APPAREL FABRIC

WOVEN 885.74 135.82 1,021.56 42.17% 458.17 141.95 600.02 36.63% 70.23%

KNITTING 36.72 32.98 69.70 2.88% 36.09 38.22 74.31 4.54% (6.20%)

922.46 168.80 1,091.26 45.05% 494.26 180.17 674.43 41.17% 61.80%

HOME TEXTILES

BED LINEN 0.21 299.25 299.46 12.36% 0.18 202.51 202.69 12.37% 47.74%

TERRy TOWELS 2.74 55.50 58.24 2.40% 3.59 28.07 31.66 1.94% 83.95%

2.95 354.75 357.70 14.76% 3.77 230.58 234.35 14.31% 52.63%

GARMENTS 2.07 42.08 44.15 1.82% 3.17 39.53 42.70 2.61% 3.40%

POLYESTER YARN 626.58 247.00 873.58 36.06% 481.75 161.86 643.61 39.29% 35.73%

TOTAL 1,586.11 836.64 2,422.75 100.00% 1,011.90 626.29 1,638.19 100.00% 47.89%

DIVISIONAL PERFORMANCE: RELATIVE SHARE IN TOTAL SALES

COTTON YARN

2%

WOVEN42%

KNITTING3%

HOME TEXTILES

15%

GARMENTS2%

POLYESTERYARN36%

COTTON YARN

3%

WOVEN37%

KNITTING4%

HOME TEXTILES

14%

GARMENTS3%

POLYESTERYARN39%

Q1, 2012-13 Q1, 2011-12

FINANCIALS AT A GLANCE



FINANCIAL POSITION

SUMMARY PROFIT AND LOSS: FIRST QUARTER(` Crore)

PARTICULARS 3M ENDED 30 JUN 2012

(Reviewed)

3M ENDED 30 JUN 2011

(Provisional)

NET SALES 2,422.75 1,643.88

(EXPORT SALES) (836.64) (626.29)

OPERATING EBITDA 759.26 464.37

DEPRECIATION 213.37 169.41

OPERATING PBIT 545.89 294.96

INTEREST 328.41 246.50

OPERATING PBT 217.48 48.46

EXCEPTIONAL ITEMS (MTM relating to forex transactions) (172.96) 18.47

PAT 30.07 58.96

OPERATING CASH PROFIT 442.45 207.14

SUMMARY BALANCE SHEET(` Crore)

PARTICULARS AS ON 30 JUN 2012(Reviewed)

AS ON 31 MAR 2012(Audited)

EQUITy SHARE CAPITAL 826.28 826.28

RESERVES & SURPLUS 2849.18 2829.22

TANGIBLE NET WORTH 3,675.46 3,655.50

TOTAL LONG TERM BORROWINGS 7,071.98 7,013.06

DEFERRED TAX LIABILITy 632.31 626.77

LonG-TErMProvISIonS 313.56 176.39

TOTAL SHORT TERM BORROWINGS 3,969.87 4,126.42

CURRENT LIABILITIES 3,728.05 2,640.22

TOTAL LIABILITIES 19,391.23 18,238.36

GROSS FIXED ASSETS 11,157.39 10,926.51

NET FIXED ASSETS 9,594.41 9,466.25

non-CUrrEnTInvESTMEnTS 175.79 175.79

LonG-TErMLoAnS&AdvAnCES 533.39 257.04

CURRENT ASSETS 9,087.64 8,339.27

TOTAL ASSETS 19,391.23 18,238.36


CASH FLOW

(` Crore)

PARTICULARS 3M 12 M

30 JUN 2012(Reviewed)

31 MAR 2012(Audited)

NET CASH GENERATED FROM OPERATING ACTIVITIES (233.88) (115.39)

NET CASH USED IN INVESTING ACTIVITIES 202.64 (1113.05)

NET CASH GENERATED FROM FINANCING ACTIVITIES (302.05) 1515.91

NET FLOW (333.29) 287.47

CASH AND CASH EQUIVALENTS

AT THE BEGINNING OF THE PERIOD 542.76 108.29

CASH AND CASH EQUIVALENTS PURSUANT TO AMALGAMATION - 147.00

AT THE END OF THE PERIOD 209.47 542.76

NET INCREASE IN CASH AND CASH EQUIVALENTS (333.29) 287.47

KEY RATIOS

Particulars 30-Jun-12 (3 Months) (Reviewed)

2011-12 (12 Months)

(Audited)

Profitability Ratios

EBITDA (%) 31.34% 29.49%

ProfitBeforeTaxMargin(%) 8.98% 8.56%

ProfitAfterTaxMargin(%) 1.24% 4.28%

Return on Net worth (%)-Annualised 3.27% 10.41%

Return on Capital Employed (%)-Annualised 13.38% 12.63%

Balance Sheet Ratios

Net Total Debt - Equity 3.44 3.14

Net Total Debt / EBITDA 4.16 4.37

Current Ratio 1.20 1.24

Coverage Ratios

EBIDTA/Interest 2.31 2.28

Net Fixed Assets/Secured Loans (1st Charge holders) 2.28 2.28

Debtors Turnover - Days 82 88

Inventory Turnover - Days 143 139

FINANCIAL POSITION



CAPACITIES AND EXPANSIONS

Divisions Units Current Capacities Capacities under Implementation

Capacities Post Expansions

SPINNING Tons 80,000 3,600 83,600

HOME TEXTILES

Weaving mn mtrs 92 - 92

Processing mn mtrs 105 - 105

Terry Towels Tons 13,400 - 13,400

APPAREL FABRIC

Processing Woven mn mtrs 130 - 130

Weaving mn mtrs 186 - 186

Knits Tons 18,200 6,800 25,000

GARMENTS mn pcs 22 22

POLYESTER

Continuous Polymerisation Tons 5,00,000 - 5,00,000

POy/Chips Tons 3,00,000 (1,34,000) 1,66.000

DTy Tons 1,30,000 40,000 1,70,000

FDy Tons 70,000 - 70,000

Cationic yarn Tons - 24,000 24,000

Polyesterstaplefibre Tons - 70,000 70,000

FINANCIAL POSITION


FINANCIAL HIGHLIGHTS FOR LAST 10 YEARS

Particulars 31-Mar-12 (12 Months)

(Audited )

31-Mar-11 (12 Months)

(Audited)


(Audited)


(Audited)Operating profits Net Sales 8,900.86 6,388.43 4,311.17 2,976.93EBITDA 2,624.75 1,879.70 1,272.48 822.61Depreciation & Misc. Exp. W/off 713.43 518.79 362.61 233.50PBIT 1,911.32 1,360.91 909.87 589.11Interest 1,149.55 736.27 535.08 304.12PBT (operating) 761.77 624.64 374.80 284.99Exceptional Items (Forex MTM - Non Cash) 121.27 41.45PAT 380.53 404.36 247.34 188.37CashProfit 1,334.19 1,083.98 711.89 513.98Dividend 28.81 22.97 22.97 17.28Net Cash Accruals 1,305.38 1,061.01 688.93 496.70Financial Position Gross Fixed Assets 11,840.67 9,920.88 8,215.61 6,692.71Net Fixed Assets 9,466.25 8,333.76 7,145.11 5,983.86Current Assets 8,596.31 5,793.77 4,801.88 2,685.93Foreign Currency Translation A/c - - 0.17 11.20Investments 175.79 139.93 229.69 478.58Total Assets 18,238.36 14,267.46 12,176.85 9,159.57Equity Share Capital 826.28 787.79 787.79 196.97 Reserves & Surplus 2,829.22 2,309.81 1,928.40 1,410.39Miscellaneous ExpensesShare Application Money & Share Warrants - - - 147.70Tangible Net worth 3,655.50 3,097.60 2,716.19 1,755.06Deferred tax liability 626.77 507.66 406.98 307.97Total Long Term Borrowings 7,013.06 6,051.40 6,436.71 5,120.53Total Short Term Borrowings 5,759.16 3,767.80 2,072.97 1,475.82Total Current Liabilities 1,183.87 843.00 544.00 500.19Total Liabilities 18,238.36 14,267.46 12,176.85 9,159.58 EPS 4.69 5.13 4.57 9.64Book Value 44.24 39.32 34.48 89.10

KEY RATIOS

Particulars 2011-12 (12 Months)

(Audited)

2010-11 (12 Months)

(Audited)

2009-10 (12 Months)

(Audited)

2008-09 (12 Months)

(Audited)Profitability RatiosEBITDA (%) 29.49% 29.42% 29.52% 27.63%ProfitBeforeTaxMargin(%) 8.56% 9.78% 8.69% 9.57%ProfitAfterTaxMargin(%) 4.28% 6.33% 5.74% 6.33%Return on Capital Employed (%) 12.63% 11.72% 9.25% 7.36%Return on Net worth (%) 13.88% 13.05% 9.11% 10.73%Balance Sheet RatiosNet Total Debt - Equity 3.14 2.75 2.62 3.56Net Total Debt / EBITDA 4.37 4.53 5.59 7.60Current Ratio 1.24 1.26 1.53 1.22Coverage RatiosPBDIT/Interest 2.28 2.55 2.38 2.70Net Fixed Assets/Secured Loans (1st Charge holders)

2.31 2.58 2.27 1.89

Debtors Turnover - Days 88 99 93 108Inventory Turnover - Days 139 114 125 116



FINANCIAL HIGHLIGHTS FOR LAST 10 YEARS

(` Crore)31-Mar-08

(12 Months) (Audited)


(Audited)


(Audited)


(Audited)


(Audited)


(Audited)

2,170.41 1,824.68 1,420.70 1,224.50 1,068.85 795.41547.75 410.96 301.26 244.53 198.40 137.14161.96 123.04 80.48 57.56 38.28 25.42385.79 287.92 220.78 186.97 158.97 110.87131.83 89.04 66.78 63.68 66.40 51.51253.96 198.88 154.00 123.29 92.57 59.36

167.73 135.18 109.21 89.25 71.08 42.31393.14 302.50 189.69 146.81 110.51 68.58

26.28 28.75 30.20 27.92 11.65 7.04366.86 273.75 159.49 118.89 98.86 61.54

4,368.05 2,954.20 2,121.89 1,047.57 690.84 453.593,891.30 2,583.80 1,874.24 879.27 579.53 380.393,377.53 1,992.66 1,403.87 1,359.21 846.68 593.15

618.96 219.49 39.70 7.85 4.07 4.077,887.79 4,795.95 3,317.81 2,246.33 1,430.28 977.61

187.17 170.37 157.47 134.02 88.23 87.69 1,134.01 854.07 650.06 460.73 218.00 162.73

1.15- - - 3.32 21.42 -

1,431.34 1,024.44 807.53 598.07 327.65 249.27210.48 141.82 100.10 75.10 50.52 36.33

3,904.81 2,258.48 1,742.08 925.85 475.12 283.651,862.50 1,078.28 470.42 477.39 426.97 265.52

478.66 292.93 197.68 169.92 150.02 142.84 7,887.79 4,795.95 3,317.81 2,246.33 1,430.28 977.61

11.40 9.70 6.68 7.25 7.90 7.3676.47 60.13 51.28 44.63 37.14 28.43

2007-08 (12 Months)

(Audited)

2006-07 (12 Months)

(Audited)

2005-06 (12 Months)

(Audited)

2004-05 (12 Months)

(Audited)

2003-04 (12 Months)

(Audited)

2002-03 (12 Months)

(Audited)

25.24% 22.52% 21.21% 19.97% 18.56% 17.24%11.70% 10.90% 13.19% 12.80% 11.79% 11.67%

7.73% 7.41% 9.78% 9.71% 9.43% 9.05%6.98% 8.05% 10.22% 14.65% 17.94% 18.61%

11.72% 13.11% 16.13% 18.28% 30.22% 28.51%

2.86 2.49 2.08 1.52 2.27 2.107.47 6.21 5.57 3.71 3.75 3.831.33 1.32 1.82 1.92 1.34 1.33

4.15 4.62 4.51 3.84 2.99 2.661.73 1.46 1.56 1.44 1.56 1.45

102 109 91 120 149 122116 93 92 108 70 128

Net Sales900080007000600050004000300020001000

0

8,900.86

2003-04 2005-06 2007-08 2009-10 2011-12

4,311.17

2,170.411,420.701,068.85

` cr

ore

Export Sales

1036.89

1558.99

3500

3000

2500

2000

1500

1000

500

0

3029.55

2003-04 2005-06 2007-08 2009-10 2011-12

394.55111.48

` cr

ore

1272.48

547.75301.26198.40

2624.753000

2500

2000

1500

1000

500

02003-04 2005-06 2007-08 2009-10 2011-12

EBITDA

` cr

ore

380.53

2003-04 2005-06 2007-08 2009-10 2011-12

400

350

300

250

200

150

100

50

0

247.34

167.73

109.2171.08

Operating Profit After Tax`

cror

e

2,716.19

807.53

3,655.50

2003-04 2005-06 2007-08 2009-10 2011-12

4000

3500

3000

2500

2000

1500

1000

500

0

Net Worth

1,431.34

327.65

` cr

ore

Net BlockGross Block

1,874.24

579.53

690.84 2,121.89

3,891.30

4,368.05

7,145.11

8,215.61

12,00011,00010,0009,0008,0007,0006,0005,0004,0003,0002,0001,000

0

9466.25

2003-04 2005-06 2007-08 2009-10 2011-12

Fixed Assets 1184

0.67

` cr

ore


SHARE PRICE AND VOLUMES

Month BSE (In ` per share) NSE (In ` Per share)

High Low Volume High Low Volume

Apr-12 21.50 18.70 2,17,34,694 21.05 18.70 98959169May-12 19.90 17.65 2,26,71,602 20.00 17.65 80747549Jun-12 19.05 17.25 1,07,12,269 19.25 17.20 59131822

SHARE PERFORMANCE VIS-A-VIS STOCK MARKET INDICES

120

100

80

60

40

20

0

ALOK - NSE NIFTY

Ap

r,1

2

Ap

r,1

2

Ap

r,1

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ALOK - BSE SENSEX

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EQUITY INFORMATION

Equity As at 30.06.2012 ` 826.27 CroresBSE NSE

Closing Price as on 29 June 2012 17.65 17.6512-Month High Low High: ` 26.30 High: ` 28.70

Low: ` 15.60 Low: ` 15.60Market Capitalisation ` 1458.37 crores

SHAREHOLDING PATTERN

SHAREHOLDER ENTITIES CURRENT QUARTER PREVIOUS QUARTER

Promoters 33.55% 31.78%Banks, Mutual Funds And FIs 11.26% 11.30%FIIs, NRIs And OCB 24.28% 23.47%Other Corporate Bodies and Public 30.91% 33.45%

Total 100.00% 100.00%

l 81.75% of the promoters’ holding have been pledged lenders as part of loan conditions. This represents a sum total of 22,66,21,148 equity shares

CAPITAL INFORMATION



TOP TEN PUBLIC SHARE HOLDERS AS AT 30 JUNE 2012

Sr. No. Name of the shareholder Shares % Holding

1 Promoters 277216518 33.55

2 Caledonia Investments PLC 46646671 5.65

3 Life Insurance Corporation of India 26964136 3.26

4 GMO Emerging Markets Fund 22598999 2.74

5 IFCI Limited 21440823 2.59

6 Barclays Capital Mauritius Limited 19631000 2.38

7 Axis Bank Limited 17349300 2.10

8 Macquarie Bank Limited 16720000 2.02

9 Goldman Sachs Investments (Mauritius) Limited 14686326 1.78

10 Swiss Finance Corporation (Mauritius) Limited 13353238 1.62

11 IDBI Bank Limited 10788161 1.31

Sub-total 487395172 59.00

Other Share holders 338874185 41.00

Total 826269357 100.00

BOARD OF DIRECTORS

Sr. No. Name Designation

1 Mr. Ashok B. Jiwrajka Executive Chairman

2 Mr. Dilip B. Jiwrajka Managing Director

3 Mr. Surendra B. Jiwrajka Jt. Managing Director

4 Mr. Chandra Kumar Bubna Executive Director

5 Mr. Ashok G. Rajani Independent Director

6 Mr. K. R. Modi Independent Director

7 Ms. Maya Chakravorty Director - IDBI Nominee

8 Mrs. Thankom T. Mathew Director - LIC Nominee

9 Mr. David Rasquinha Director - EXIM Bank Nominee

10 Mr. Timothy Ingram Independent Director

11 Mr. M V Muthu Director - IFCI Nominee

CAPITAL INFORMATION


ECONOMY OVERVIEW

Sources: IMF, RBI reports

THE GLOBAL ECONOMY

In the past three months, the global recovery, which was not strong to start with, has shown signs of further weakness. Financial market and sovereign stress in the euro area periphery have ratcheted up, close to end-2011 levels. Growth in a number of major emerging market economies has been lower than forecast. Partly because of a somewhat better-than-expected first quarter, the revised baselineprojections in the WEO Update suggest that these developments will only result in a minor setback to the global outlook, with global growth at 3.5 percent in 2012 and 3.9 percent in 2013, marginally lower than in the April 2012 World Economic Outlook. The forecasts, however, are predicated on two important assumptions: that there will be sufficientpolicy action to allow financial conditionsin the euro area periphery to ease gradually and that recent policy easing in emerging market economies will gain traction. Clearly, downsideriskscontinuetoloomlarge,importantlyreflectingrisksofdelayedorinsufficientpolicyaction.InEurope,the measures announced at the European Union (EU) leaders’ summit in June are steps in the right direction. The very recent, renewed deterioration of sovereign debt markets underscores that timely implementation of these measures, togetherwithfurtherprogressonbankingandfiscalunion,mustbeapriority.IntheUnitedStates,avoidingthefiscalcliff,promptlyraisingthedebtceiling,anddevelopingamedium-termfiscalplanareoftheessence.Inemergingmarketeconomies,policymakersshouldbereadytocopewithtradedeclinesandthehighvolatilityofcapitalflows.

INDIA

l The Reserve Bank cut CRR by 125 basis points (bps) and front-loaded the policy rate reduction by cutting the reporateby50bpsinApril2012.It,however,pausedatitsMid-QuarterreviewinJune2012factoringininflationpersistenceandmacro-economicrisksthatemanatedfromlackofmomentuminfiscalconsolidation

l Growth in Q1 of 2012-13 is likely to have stayed low after having dropped to a 29-quarter low in the sequentially preceding quarter. While the slowdown has been primarily driven by investment, more recently and to a lesser extent, consumption has also slowed. Newer risks to growth have arisen from slowing global trade, domestic supply bottlenecks of industrial inputs, coal and electricity and less-than satisfactory monsoon so far. Services growth is also showing signs of slowing in line with slowing industrial growth and weak global economy

l HeadlineWPIinflationpersistedabove7percent,whileconsumerpriceinflation,asperthenewCPI,remainsindouble-digits.Inflationarypressureshavepersisted,withsignificantcontributionfromfoodandenergysegments

l Spill overs from global financial market uncertainties and waning investor confidence amidst deterioratingmacroeconomic conditions, kept domestic currency and equity markets under pressure. The rupee depreciated by nearly 10 per cent during Q1 of 2012-13, before staging some recovery in July 2012.

Figure 1. Global GDP Growth

( )Percent, quarter over quarter, annualized

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developing economiesWorld

Advanced

economies

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-102007 08 09 10 11 12 13

Q4

Source: IMF staff estimates



INDUSTRY OVERVIEW

THE TEXTILE INDUSTRY

Global

l Textile and clothing markets are likely to remain subdued in 2012, given the considerable uncertainty in the global economy,andthefactthatthedebtcrisisintheeurozonecontinuestohitbusinessandconsumerconfidence,according to Issue No 156 of Textile Outlook International from the global business information company Textiles Intelligence.

l In the EU economy, the recovery which started in 2010 is expected to be snuffed out in 2012. Forecasts suggest that the EU economy will suffer a second dip in 2012 with GDP down in real terms by 0.5%. A partial recovery is predicted for 2013 but GDP is expected to grow by only 0.8%.

l TheviewsofEuropeantextilemanufacturersreflect thisoutlook.Havingreportedanotablerecovery in theirmarkets in 2011, the recovery slowed markedly in the last quarter of the year and the view now is that the effects of Europe’s economic turbulence will continue to have an adverse effect on trade during the remainder of 2012 andperhapsbeyond.Indeed,inthefirstquarterof2012,EUclothingimportsweredowninvolumebyadramatic12.0%.

l The prospects for the USA are less pessimistic. In 2012 GDP growth is expected to accelerate to 2.2%, from 1.7% in 2011, before falling back slightly to 2.1% in 2013. Nevertheless, clothing imports continue to be affected, with thevolumeofimportsinthefirstquarterof2012downby3.9%.

l WeakmarketconditionsintheEUandtheUSAaffectedexportsfromseveralAsiancountriesinthefirstquarterof 2012, following strong growth in 2011 as a whole. In Indonesia, for example, textile and clothing exports rose invalueby18.2%in2011butfellby5.2%inthefirstquarterof2012.InThailand,exportsroseinvalueby7.5%in2011butdeclinedbyasharp15.3%inthefirstquarterof2012.AndinthePhilippinesclothingexportgrowthslowedinvalueto just1.1%inthe firstquarterof2012followingan11.4%rise in2011.Exportgrowthalsoslowed in several other countries.

Indian Textile Update

lIn 2011-12, the country’s textile export stood at USD 33 bn as against USD 26.9 bn IN 2010-11. The Ministry of Textiles has fixed an export target of USD 40.5 bn for the current fiscal.

l Cotton prices are now stable around ` 33000 per candy after touching as high as ` 60000 per candy. Indian cotton production is about 1200 mn tons out of which 4600 mn tons is consumed / stored and balance is exported. Also, the world cotton production is likely to increase by about 8% which should lead to an easing off and stable cotton prices in 2012-13.

l The polyester yarn prices move in tandem with crude oil prices. Presently, internationally crude oil prices are high but stable. As a result, PTA and MEG are also likely to be stable.

Polyester Inputs Prices

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PRESS RELEASE

Q1 FY13 Net Sales up by 47.89 % to ` 2422.75 crore

PAT after exceptional items is ` 30.07 crore

Editors Synopsis

For the Quarter ended June 30, 2012:

lNet Sales up by 47.89% at ` 2422.75 crore

lEBIDTA increased by 63.50% at ` 759.26 crore

lOperating PAT including exceptional items at ` 30.07 crore

Mumbai, August 13, 2012: Alok Industries Limited, one of the leading integrated textile companies in India, today reported net sales of ` 2422.75 crore for the quarter ended June 30, 2012, as compared to ̀ 1,638.19croreinthecorrespondingperiodofthelastfiscal,registering a growth of 47.89%.Export sales for the quarter ended June 30, 2012 stood at ` 836.64 crore, as against ` 626.29 crore in the same period ofthelastfiscal,markingagrowthof33.59%.The EBIDTA for the quarter was at ` 759.26 crore as against ` 464.37 crore in the corresponding quarter last year.duringtheJune’12quarterthecompany’snetprofit(afterexceptionalitems)stoodat` 30.07 crore, as compared to ` 58.96crorepostedinthesamequarteroflastfiscalyear.

Management Comment

Commenting on the results, Mr. Dilip Jiwrajka, Managing Director, Alok Industries Limited, said, "the last quarter performance is a testimonial of our company's integrated business model and our dominant presence in both the cotton and polyester segments. All divisions recorded healthy growth and we expect this trend to continue in the coming quarters. Our order book position for all products is at fairly satisfactory levels. Going forward, we intend to strategically expand certain divisions to further integrate our businesses as also take emphatic steps to reduce fuel cost. Our path is clear now: we will monetize our non core realty and retail businesses and use the funds to retire debt in Alok; we will alsofocusonimprovingourroCEandcashflowssubstantially."

About Alok Industries Limited:

(BSE Code: 521070) (NSE Code: ALOKTEXT) (Reuters Code: ALOK.BO) (Bloomberg Code: ALOK@IN)

Established in 1986, Alok Industries Ltd. is amongst the fastest growing vertically integrated textiles company in India. Itprovidesend-to-endsolutionsthroughfivecoredivisionsCottonyarn,Apparelfabrics,Hometextiles,GarmentsandPolyester yarn. Alok’s large customer base comprises domestic and overseas retailers, garments exporters in India and converter countries who are vendors to major international labels, they include some of the world’s largest retailers and India’s largest manufacturers of apparel and home textiles. About 35% of Alok’s production is exported to over 90 countries with major markets being US, Europe, Latin America, Asia and Africa. Alok has capacities of 105 mn meters of sheeting fabric and 13,400 tons of terry towels for its home textiles business, 186.00 mn meters of apparel width woven fabrics, 18200 tons per annum of knitted fabrics and 22 million pieces per annum of garments. The company also has a strong presence in the polyester segment with a Continuous Polymerisation capacityof5,00,000tonsperannum;dividedintodiversifiedproductmix:1,66,000tpaofPoY/Chips,1,70,000tpaofdTY,70,000tpaofFdY,24,000tpaofCationicyarn,70,000tpaofPolyesterstaplefibre.

For More Information Please Contact:

Mr. Sunil O. KhandelwalChief Financial OfficerAlok Industries LtdTel: 022-2499 6200Email: [email protected]

Mr. Siddharth Kumar/Mr. Ankur ParikhAdfactors PR, MumbaiCell : 9833933447/[email protected]@adfactorspr.com

END T

O EN

D SO

LUTION

S ACRO

SS TH

E VALUE C

HAIN

"Alok is an 'end-to-end' provider of Innovative Textile Solutions, with five core divisions: Cotton Yarn, Apparel Fabric, Home Textiles, Garments and Polyester Yarn

Alok's State of the Art Integrated Textile FacilitiesOUR

To be the world's best integrated textile enterprise, with a leadership position across products &

markets exceeding customer & stakeholder expectations

VISION

driven by research & innovation,

The barometer of our success would be the ROCE

OUR MISSION We will:?

?Maximize people development initiatives

?Optimize use of all resources

?Become a process driven organization

?Exceed compliance and global quality standards

?Actively explore potential market & products

?Offer innovative, customized and value added services to our customers

?Be an ethical, transparent and responsible global organization

Be a knowledge leader & an innovator in our businesses

TMInnovative Textile Solutions

Jacquard Terry Towel Loom Knitting

Spinning Airjet Weaving Loom

WP

PL

P E R F O R M A N C E R E P O R T

First Quarter Ended 30 June 2012



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