The Hindu Business Line : Morarjee Textiles posts Rs 5.9-cr loss

Mumbai, July 28 Morarjee Textiles Ltd of the Ashok Piramal group has reported a loss of Rs 5.90 crore on a consolidated basis in the first quarter ended June 30, 2007.

The standalone loss stood at Rs 6 crore against net profit of Rs 8 crore in the corresponding quarter last year.

The turnover stood at Rs 36 crore compared with Rs 212 crore of the corresponding period last year.

Production loss

The performance of the quarter was affected due to production loss at the Nagpur unit on account of disruption of water supply from MIDC for 40 days, said a company release.

Terming the quarter as a tough one for the company, Mr Harsh Piramal, Executive Vice-Chairman, said, “In textiles, loss of water extends to the material on machines in various stages of processing which have to be discarded adding to the overall loss in production and cost.”

Strong rupee impact

The rupee appreciation negatively impacted on the bottom line, he said, adding, “We expect the Indian currency to remain in the current range, and have begun discussions with our customers to neutralise the impact of future rise.

“Through our Men’s Club acquisition, we are lowering our dependency of the dollar by making inroads in the markets of Europe and Japan.”