The news of resignation of auditors and total debt ballooning to Rs 20,000 crore for textile major Alok Industries may have drawn readers' attention. However, the problem has already been compounding for past many years.
Alok Industries is up 5% and is quoting at Rs 12 on the BSE after the company decides to raise Rs 2,000 crore in the next two years by selling its Store 21, and well as land in Mumbai, Vapi and Silvassa.
Alok Industries and Arvind Ltd (formerly Arvind Mills), two major textile companies, are likely to see a better quarter as cotton prices during the fourth quarter of FY13 have remained stable at around Rs 10,000 a quintal and synthetic fibre prices have
Textile major Alok Industries is looking at exiting its retail ventures as it wants to focus on its ‘core businesses’ and shift from non-core businesses such as retail which have increased its debt burden.
Alok Industries announced Rs 551-crore Rights Issue on September 25. While this is not good news for shareholders as there could be around 30 per cent dilution (assuming the company raises at current market price), it will indirectly benefit the company
Integrated textiles company Alok Industries on Monday reported 77.73 per cent growth in net profit after tax to Rs 283.50 crore for the quarter ending March 31. Profit after tax during 2010-11 stood at Rs 159.59 crore, the company said.