Bombay Dyeing & Manufacturing Company which posted a loss of Rs.48.34 crore in the first quarter of current fiscal, extended these losses further in Q2. It posted a net loss of Rs 103.97 crore for the quarter ended Sep 30, 2008 against the net profit of Rs 18.77 crore for the quarter ended Sep 2007. What was gratifying to note was that its net sales increased 51.07% to Rs.254.07 crore in Sep quarter of 2008 from Rs 168.18 crore in the corresponding quarter of previous year.
The company’s working for the quarter has been severely affected mainly due to stabilisation of commercial production at its processing facilities at Ranjangaon and adverse market condition particularly in the export market; over supply situation and high cost of raw materials driven by high crude oil prices not absorbed by the market in Polyester business and the lower sale in the Real Estate Division also impacted its revenue
The company has stated that commercial production of polyester staple fibre commenced from Oct 1, 2007 and hence the figures for the current quarter are not comparable with the corresponding quarter of the previous year.
What is worrying is that with effect from April 01, 2008, the company, MTM forex loss aggregating Rs.14.75 crore has been accounted for as a Hedging Reserve to be ultimately recognised in the profit and loss account when the forecasted transactions arise, as against the earlier practice of recognising the same in the profit and loss account, by marking them to market at the end of each period. This means, if it had accounted for the MTM forex losses, the net loss in Q2 would have been higher.
The company is developing eight lakh sq ft of property on its surplus land in Mumbai. It is redeveloping its Spring Mills property in Central Mumbai into a residential tower, 84% of which has been sold. The work at Dadar and Worli is also under way, with two commercial and IT/ITeS towers expected to be ready by 2009-10.
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Even Reliance's synthetic textile business is in trouble as they have closed some plants as per a Business Standard article.
ReplyDeleteyes subhankar you are right,
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