Himatsingka Seide

Himatsingka Seide posted a set of very good numbers for Q4FY13. Its consolidated net profit came in at Rs.22.45 crore, up 11 times on YoY and sequentially, it was up 72%. The company ended the year with a het profit at Rs.57.32 crore, up 73%. More than operational efficiency, the tax write back of of Rs.12 crore in what helped shore up the Q4 numbers. Fy13 was purely on better operations.

Its distribution revenues in North America was up 22% and this is its biggest revenue contributor. On the other hand, revenue from Europe fell 37%. India and Asia, where it distributes ‘Atmosphere’ brand was down 6%. Its manufacturing business, represented by drapery, upholstery and bedding rose 23%. Earlier, it was the high cotton prices which hit the company hard but now with prices softening, it is having a much better run. More importantly its derivative contract which had gone miserably bad in the previous year is now behind it. Though the numbers are good and the company is recovering well, investor fancy for textile stocks is not high and thus price is expected to remain capped at around the same levels.