The Hindu Business Line : Himatsingka posts net loss of Rs 23 cr in 2007-08

Bangalore, June 30 Textile manufacturer Himatsingka Seide has reported a net loss of Rs 23.99 crore for the year ended March 31, 2008 compared to a net profit of Rs 61.43 crore last year. Consolidated revenues for the year have grown 264.84 per cent to Rs 892.32 crore.

Revenues for the fourth quarter stood at Rs 285.14 crore (Rs 50.3 crore). Net loss for the period stood at Rs 41.09 crore (net profit of Rs 8.90 crore).

The consolidated results for the year include a Rs 40.28-crore loss from the company’s new bed linen manufacturing facility, which was commissioned on October 12, 2007.

Bed linen unit losses

Himatsingka Seide also incurred a loss of Rs 9.50 crore in the first half of the fiscal year due to the bed linen unit, before commercial production began.

The facility resulted in a loss of Rs 22.43 crore in the last quarter, as capacity utilisation was low at 53 per cent in the quarter.

The total investment in the bed linen facility at the Hassan SEZ is Rs 437 crore.

During the year, the company concluded the acquisitions of Divatex Home Fashions, US, and DWI Holdings, US.

Mr Shrikant Himatsingka, Executive Director, Himatsingka Seide, said, “Having committed investments of Rs 1,000 crore in M&A, greenfield initiatives and organic expansions over the last 18 months, Himatsingka is now a truly integrated global home textile company. Our focus going forward would be to stabilise our greenfield facility in Hassan, to enhance synergies with our acquired entities and continue to explore growth opportunities in emerging markets on the retail and distribution front.”

Following rising energy prices, the company is executing a coal-based co-generation captive power plant with a capacity of 12.5 MW, which is expected to be commissioned in the second quarter of 2009.

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Himatsingka posts net loss of Rs 23 cr in 2007-08