Himatsingka hits new low

Himatsingka Seide is leading the pack of losers on the BSE as the market is very unhappy with its performance for Q3FY20.

Consolidated Total Income for the quarter rose by a marginal 2% (YoY) at Rs.676 crore and net profit fell 95% at Rs.3 crore v/s Rs.51 crore.

The company’s profitability was impacted due to reversal of MEIS of Rs.11.28 crore, in fact the rise in total income was because it was adjusted to this reversal; without taking into this adjustment, the revenue was down 2%.

The exceptional item of Rs.34 crore represents, reversal of MEIS benefit of Rs.26 crore and expenditure of Rs.8.5 crore towards restructuring of European business.

EBITDA was down 17.5% at Rs.25 crore.

The commercial production at its Terry Towel facility commenced on October 3, 2019. During the quarter, revenue streams from brands stood at Rs.579 crore vs tRs.71 crore during Q3 FY19.

The stock is the top loser on the BSE currently, hitting a new 52-week low at Rs.114 and presently remains around the same low.