Himatsingka Seide

The company which was mired in losses over the past few quarters turned around in Q3Fy12 and since then has been doing well. And it continues to do well in Q1FY13 too wherein it posted a 175 rise in revenue at Rs.382 crore  and this surge was thanks to its overseas sales. Its revenue in North America comes from Calvin Klein Home, Barbara Barry and others in addition to private label, which grew by 1.9% but that from Europe, which came from Bellora brand fell by 22.4%. Its brand in India – Atmosphere, also sold in West Asia and South-East Asia, rose 15%.

The company seems to have fully recovered from its forex derivatives contract. The company has stated that as on 9th Aug, the liability on account of a forex derivative contract was crystallised at Rs.15.54 crore. The company provided Rs 18.24 crore on account of the above contract as on June 30. As per the risk management policy, the company continues to hedge foreign-currency exposure through forward-exchange contracts and it has no other derivative contracts. Cotton price, its main staple raw material has also stabilized at Rs.37,500/candy and if there is no shortage due to lacklustre monsoon , prices are expected to remain around same levels. But if production falls and demand from China rises, cotton prices could soar, which in turn could affect margins.