The Hindu Business Line : Himatsingka net falls to Rs 11.5 cr

SILK fabric and yarn exporter Himatsingka Seide Ltd (HSL) has reported a 12 per cent drop in its net profit for the quarter ended September 2004 on a year-on-year basis following a sharp decline in its other income.

Total revenues declined by 8 per cent on lower yarn sales during the quarter.

Net profit stood at Rs 11.50 crore (Rs 13.05 crore in the year-ago period) on total revenues of Rs 35.76 crore (Rs 38.77 crore).

Net sales were down during the quarter at Rs 34.63 crore (Rs 35.26 crore). The company has declared an interim dividend of Rs 5 per share (50 per cent on face value of Rs 10 each).

On sequential basis, net profits and sales were up 14 per cent and 17 per cent respectively over the first quarter of this fiscal.

HSL improved its operating margins during the quarter to 44.3 per cent, up from 39.9 per cent in the second quarter last year.

For the first half in current fiscal, HSL's net profits were lower at Rs 21.62 crore, against Rs 24.36 crore in H1 last year. However, sales revenues increased marginally to Rs 65.76 crore (Rs 64.68 crore).

The company plans to add capacity in its fabric division by adding 37 looms at a total cost of about Rs 24 crore.

The planned expansion will be in two phases, 29 looms by April 2005 and 8 looms by September 2005, the release said.