MUMBAI: Alok Industries, a fully integrated textile company, is now planning to sell real estate portfolios to raise funds and retire debt.

The company expects to generate an inflow of Rs 700 crore in the next two years.

Latest News

Firm has already signed deal to sell part of its property in central Mumbai
Expect inflow of about Rs 67 cr from 670 central Mumbai property sale

Q3FY10 REVIEW

Net sales up 33% at Rs 1082.5 cr vs. Rs 816.4 cr
PAT up 23% at Rs 58.1 cr vs. Rs 47.3 cr
EBITDA up 51% at Rs 322.8 cr vs. Rs 214.4 cr
OPMs up 360 bps at 29.8% vs. 26.3%

Industry Overview

Indian textile industry contributes 14% to Industrial production
Contributes 4% to the country's GDP and 16.63% to export earnings
Government has announced release of subsidy of $ 533.87 million for textile industry
Govt extends 10% capital subsidy, 5% interest subsidy on installation of machineries

Key Concerns

Recession in global economy
Fluctuations in exchange rates
High competition from global players
Adverse Govt. policies

About The Company

Vertically integrated textile co with five business divisions
Has business interest in retail as well as real estate
Plans to book profits from its real estate investments and to focus on core business
Has 70 retail stores, plans to up stores to 1000 in next five years

Key Ratios

                                   FY09   FY10E FY11E
OPM (%)                     26        29        29
P/E(x)                          2.64     5.79     4.60
EV/EBDITA(x)            0.59     1.36     1.32
Debt equity ratio       4.96     3.66     3.48