ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Fall-Out of Textile Slump

Fall-Out of Textile Slump Hansavivek ZENITH STEEL PIPES AND INDUSTRIES has suffered a sharp setback in its working during year ended June 1983 with drop in gross profit from Rs 3.13 crore to Rs 1.89 crore even though sales have been higher at Rs 81.16 crore against previous year's Rs 78.24 crore. Net profit has tumbled to a mere Rs 36 lakh from Rs 229 lakh. Even reduced dividend of 10 per cent is short-earned, whereas last year's distribution was covered as much as 3.22 times by earnings. Average capacity utilisation of pipe plant was at the lowest. Recession in textile industry adversely affected demand for products of chemical division. Increase in import duty of high speed steel from 55 per cent to 93 per cent adversely affected profitability of tools division. Though spinning unit of Khamgaon unit has achieved full rated capacity, textile industry continues to face its worst crisis ever. Due to recessionary trend in world market and resultant intense competition, company's exports fell to Rs 8.94 crore from previous year's Rs 10.02 crore.

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