The Hindu Business Line : Bombay Dyeing posts Rs 56-cr annual profit

BETTER margins in the textile and DMT businesses, lower finance costs and profits from sale of assets helped Bombay Dyeing & Manufacturing Company to post a 65.58 per cent increase in net profit at Rs 53.5 crore for the year ended March 31, 2004 as compared to Rs 32.31 crore for the year ago period.

Total income (net of excise) increased 7.5 per cent to Rs 966.34 crore over Rs 898.25 crore in 2003. Other income also moved up to Rs 60.84 crore from Rs 52.84 crore in the previous year.

For the year ended March 31, 2004, the company's finance costs fell 42 per cent to Rs 10.39 crore (Rs 17.95 crore) due to its ability to source low cost funds in the domestic and international markets.

The board proposed an equity dividend of Rs 4 per equity share for the year ended March 31, 2004, subject to approval.

According to a company statement, despite a marginal drop in sales turnover, the textile business performed better by concentrating on the elimination of non-value added business, product-mix upgradation, and reducing and controlling costs.

The textile manufacturing activity is being consolidated at the Textile Mill, Worli, Mumbai, while manufacturing activity at Spring Mill, Dadar, is being wound down. Development on Spring Mill land, for which the requisite clearances have been received, will commence shortly.

The DMT business turnover grew 20 per cent though margins are slightly lower than the previous year. For the quarter ended March 31, 2004, the company posted a net profit of Rs 24.84 crore against a net loss of Rs 1.1 crore for the quarter ended March 31, 2003. Total income (net of excise) increased to Rs 281.54 crore over Rs 226.46 crore in the corresponding previous period.