Bombay Dyeing

Bombay Dyeing hit the bottom after it posted a set of dismal numbers for Q1FY14, wherein it reported a net loss of Rs.27 .57 crore, almost same loss as the one it had posted in Q1FY13 at Rs.27.50 crore. The company, in Q4 had posted a net profit of Rs.158 crore. The loss in Q1 was despite the 8% (YoY) rise in net revenue at Rs.516 crore. The revenue from its textile segment was up 21% and that from the polyester segment rose 2%. Its revenue from realty segment also rose 14%. So what really pushed the company into losses were the high interest outgo, at Rs.43 crore compared to Rs.38 crore in Q4. The net debt of the company currently stands at around Rs.1300 crore.

Today it is the realty segment which is making money. Textiles and polyster both had posted losses at EBIT levels while realty posted an EBIT of Rs.67 crore, up from Rs.45 crore EBIT in Q1FY13. Q4 EBIT at Rs.267 crore currently seems like an aberration. The company needs to first trim its debt which will help the bottomline. Realty sector is currently down and if that remains the bread winner then it could have a bumpy ride ahead.