JBF Industries Limited, a leading manufacturer of Polyester Chips and Polyester Yarn announced its results for the quarter ending December 2006. In Q3 FY 06-07, JBF registered Net turnover of Rs 414.67 crores as against Rs 176.64 crores in corresponding previous year period. The net profit in the same period increased from Rs 9.60 crores to Rs 23.37 crores for the Q3 FY- 06.

In the quarter ended December 2006, the profit before tax was Rs 32.44 crores as against Rs 12.47 crores in the same period in the previous year. The company’s earnings per share on a fully diluted basis for the most recent quarter was Rs.3.46 (non diluted 4.60). On 9 months basis, the earnings per share on fully diluted basis stood at Rs. 9.24 (non diluted 42.26)

This is the third quarter of sequential organic growth in revenues and earnings after taxes after the company’s expansion plans. Company’s higher sales & profit were due to increased volume as a result of commissioning of Chips plant at Sarigam, Gujarat and also partially due to new POY plant at Athola, Silvassa.

Mr Rakesh Gothi, Managing Director, said, “We are very pleased with our sequential progress. We have diversified our revenue base, improved our revenue quality, and completed and commissioned our expansions during the year, while optimizing our operating margins and introducing new offerings.”

The company’s new plant at Silvassa has manufacturing facilities for production of FDY, Micro and other commodity POY. The new expansion of upto 90,000 TPA was commissioned in October 2006 leads to a total capacity of 150,000 M.T. of POY at Silvassa.

The company’s new plant at Sarigam with a capacity of 216,000 TPA for manufacture of Polyester Textile Grade chips is running to full capacity. The total capacity of chips between two of Jeff’s plants now stands above 330,000 TPA. The Board has further approved expansion of capacities at Sarigam by another 216,000 TPA leading to a total capacity of 5, 52,000 TPA for the Company. This will be achieved at a low cost of about Rs. 90 crores, as the company already has adequate infrastructure in terms of power, utilities, land & building. At full scale of operation, this additional capacity should generate additional turn over of Rs. 1100 crores and about Rs. 45 – 50 crores to the bottom line.

Said Mr. Arya, Chairman, JBF Industries, “Post-quota removals; the upswing in the textile industry is driving the demand for textile grade polyester chips and yarn. The company’s expansion plans would address the increasing demand.”