MUMBAI (Commodity Online): Punjab-based textile produce, Vardhman Textiles Ltd (BOM:502986) gained momentum on the bourses today as the company's first quarter profits zoomed up by over 97% for the period April-June 2010.

Company stocks gained by over 1.6% in the morning trades today on the Bombay Stock Exchange (BSE) as the net profits for the Q1 of the current fiscal rose by 97.24% to Rs.78.72 crore, while sales grew by 30.10% at Rs.806.71 crore over the same period last year.

The company had declared its financial results on Saturday, July 17, 2010. The stock hit a high of Rs.297.90 and a low of Rs.287.55 so far during the day.

Meanwhile, the company board of directors has approved the demerger of the steel business into a separate company, Vardhman Special Steels (VSSL) with effect from 1 January 2011. VSSL will be a wholly owned subsidiary of VTEX.

As per the demerger scheme, shareholders of VTEX will get one equity share of the face value of Rs 10 each in VSSL, for every five equity shares of the face value of Rs 10 each held by them in the company.

Further, shares of VSSL will get listed on the Bombay Stock Exchange and the National Stock Exchange.