For the first quarter of the current fiscal Vardhman Textiles’ net profit has risen 23.5 per cent year-on-year, the company will maintain its operating margins around 18 to 22 per cent in FY17. Vardhman Textiles, based in Ludhiana, is one of India’s largest manufacturers of yarn. The company reported a subdued top line growth in the first quarter. Top line growth was two per cent. This was due to a decline in the price of yarn and fabrics, the two biggest business segments for the company, by almost four per cent. But efforts are being made to compensate by an increase in productivity. Profits were better mainly due to a reduction in depreciation and better results of its subsidiaries Vardhman Acrylics and Vardhman Yarns & Threads. In the subsidiaries sewing threads has shown better results. There has been a reduction in depreciation. There was a little bit of productivity improvement and therefore production was a little higher in yarn.

Vardhman which began operations in 1965 has diversified into yarn processing, weaving, sewing thread, fabric processing, acrylic fiber manufacturing and into special or alloy steels. Over the years the group has expanded its spinning capacities besides adding new businesses.