Bombay Dyeing & Manufacturing Reports Loss Once Again
DSIJ Intelligence / 08 Feb 2013
Bombay Dyeing and Manufacturing Company, reported dismal Q3FY13 numbers, as a result of which, the stock is trading lower by 2.41% to Rs 103.3 per share.
Bombay Dyeing and Manufacturing Company, yesterday, reported its Q3FY13 numbers post market. The company posted dismal numbers, as a result of which, the stock is trading lower by 2.41% to Rs 103.3 per share today. For a straight third consecutive quarter, the company posted a loss, which is very disappointing. The following table gives us an overall view of Bombay Dyeing’s financial performance for the December 2012 quarter:
| Particulars | Dec 2012 | Dec 2011 | % change |
|---|---|---|---|
| Net Sales/Income from operations | 471.07 | 430.19 | 9.50 |
| Other Operating Income | 9.54 | 13.58 | -29.75 |
| Total Income From Operations | 480.61 | 443.77 | 8.30 |
| Increase/Decrease in Stocks | 18.25 | -28.21 | -164.69 |
| Consumption of Raw Materials | 284.8 | 312.6 | -8.89 |
| Purchase of Traded Goods | 34.36 | 35.84 | -4.13 |
| Employees Cost | 24.99 | 17.67 | 41.43 |
| Other Expenses | 95.02 | 113.1 | -15.99 |
| Operating Profit | 23.19 | -7.23 | 420.75 |
| Depreciation | 15.22 | 15.19 | 0.20 |
| Other Income | 7.43 | 2.34 | 217.52 |
| Interest | 42.26 | 32.03 | 31.94 |
| Net Profit/(Loss) For the Period | -26.86 | -52.11 | -48.46 |
| Diluted EPS | -1.3 | -12.85 | -89.88 |
Net Sales of the company increased by 10% to Rs 471 crore, while Net Profit of the company plunged down by 48% to Rs 27 crore on a YoY basis. Its net profit came in on a lower end after the company had heavy interest burden, which grew by 32% to Rs 42 crore on a YoY basis.
However, one should note that the company’s operating profit stood at Rs 23 crore, against a loss of Rs 7 crore on a YoY basis. The operating margin for the December quarter stands at 4.82%.
Commenting on the results, Durgesh Mehta, JMD said, “The improvement in profitability was largely driven by the company's real estate business “Bombay realty” - a realty division of the company which has successfully launched its premium residential towers.”
Further, the company was in the news recently and as per media reports, the Maharashtra government has informed the Bombay High Court that the textiles major had obtained approval for using a mill land in central Mumbai for commercial development "illegally and unlawfully" with the connivance of a government officer not vested with the authority. This resulted in the stock taking a 12% plunge in the past 4 to 5 trading sessions.
Jeh Wadia, MD of the company clarified that that these reports are factually incorrect and the company will be filling a suitable counter affidavit addressing the allegations made therein.
Overall, we believe that the company has disappointed the streets by posting dismal numbers and is also surrounded by a whole lot of issues, which will result into higher volatility in its share price. The company has been reporting losses in the past and therefore has a negative EPS. We believe that one should stay away from the counter.
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