Himatsingka Seide sees strong demand for home textile products

Anil Urs Bengaluru | Updated on June 11, 2021

The company has a strong order book for FY22

Himatsingka Seide Ltd, an integrated textile group with a global footprint, sees strong demand for home textile products across segments and markets despite the lockdowns, Covid-19-led disruptions, regulatory uncertainty and rise in raw material prices.

KP Rangaraj, President- Finance & Group CFO, told analysts: “We were pleased with our operating performance during the second-half (H2) of FY2021 on account of better capacity utilisation and order books. The demand for home textile products continues to be strong across segments and markets.”

He further said: “The company has a strong order book for FY22. The capacity utilisation levels at our bedding and terry towel facilities have increased and are expected to continue to improve in FY22 on the back of strong order books.” On capacity utilisation, Rangaraj said: “Our capacity utilisation levels for manufacturing facilities during Q4 FY21 have been good and are as follows: Sheeting division clocked 76 per cent capacity utilisation in Q4 vs 71 per cent capacity utilisation in Q3. Terry towel division clocked 63 per cent capacity utilisation in Q4 vs 45 percent capacity utilisation in Q3. The spinning division continued with 101 per cent capacity utilisation and pretty much the same in Q3.”

Total income

According to Rangaraj, the company posted a consolidated total income of ₹2,272.53 crore for FY21 against ₹2,419.65 crore in the previous year. “The income and operating performance have been impacted on account of the following: Lockdown restrictions imposed during the first-quarter of the fiscal. Major Covid-led disruptions witnessed during Q2 FY21, and impacted on account of the non-recognition of export incentives under the RoDTEP scheme as the rates of the same are yet to be notified and the inflation in raw material prices and imposition of import duty and levies on raw cotton.”

On the company’s debt position, Rangaraj said: “The company’s consolidated gross debt as of March 31 stood at ₹2,467 crore compared to ₹2,814 crore at the end of the previous fiscal, which translates to a reduction of ₹348 crore. The total term debt stood at ₹1,613 crore and the total working capital debt stood at ₹836 crore. We will continue to be focused on deleveraging our balance sheet going forward.”

Published on June 11, 2021

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