The Hindu Business Line : Himatsingka Seide net down by 13 pc

BANGALORE: Silk fabrics and yarn exporter Himatsingka Seide Ltd has reported a 13 per cent drop in net profit even as its sales grew by 7 per cent during the quarter ended December 31, 2004 over the corresponding period the previous year.

The company reported a net profit of Rs 11.74 crore on sales turnover of Rs 39.23 crore during Q3 of 2004-05 compared with a net of Rs 13.45 crore on a turnover of Rs 36.52 crore in the corresponding previous year.

Himatsingka attributed the drop in net profit to lower other income, which was down by 61 per cent to Rs 1.4 crore during the quarter. The company did not realise the gain of Rs 1.4 crore, which was the appreciation in the value of the investments held as on December 31, 2004. Had this happened the other income would have been significantly higher, the company said in a release.

Revenue from the fabric business, which accounts for 82 per cent of the company's sales, was up by 15 per cent at Rs 33 crore during the quarter. However, external sales of yarn were lower at Rs 6.2 crore.

Total revenues (including other income) improved to Rs 40.65 crore (Rs 40.15 crore in Q3 last year). The company maintained operating margins at 39.1 despite rupee appreciation while the fabric realisation in dollar terms was also maintained. —

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page