Companies

Himatsingka Seide undertakes cost optimisation to beat Covid blues

Anil Urs Bengaluru | Updated on September 14, 2020 Published on September 14, 2020

Himatsingka Seide, a vertically integrated textile company, has undertaken cost optimisation measures even as it plans to ramp-up operations.

“While we may face Covid-19 related interruptions, the ramping up of capacity utilisations across our facilities has been progressing well during the second quarter of financial year 20020-21 ,” said Shrikant Himatsingka, Managing Director and Group CEO, Himatsingka Seide.

In other businesses too, the company has been ramping up capacity utilisation. “Our new terry towel facility, is also progressing well. The utilisation levels will continue to increase as we go into the second half (H2) of FY21,” he said.

“We are also committed to optimise our working capital cycles and inventory reduction measures continue to yield results. While we reduced the inventory by about ₹90 crore during FY20, and the same has come down by an additional ₹48 crore during the first quarter of 2021,” he added.

The textile company has been increasing its presence in the Europe, West-Asia and the Asia-Pacific markets. “In addition, we remain focussed to enhance our presence on e-commerce platforms globally,” said Shrikant.

“On the order book front, while the Q2 FY21 order book looks healthy under the current circumstances, our H2 FY21 order pipeline is robust and we remain focussed to surpass pre-Covid levels of operating performance.”

The consolidated gross debt as of June 30 stood at ₹2,786 crore against ₹2,814 crore at the end of FY20. “We had a total term debt of ₹1,758 crore and our total working capital debt stood at ₹1,028 crore. The cash and cash equivalents and current investments stood at ₹244 crore as on June 30 as compared to ₹214 crore on March 31. Consequently, the net debt as on June 30 stood at ₹2,542 crore against ₹2,590 crore during March 31, 2020.

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Published on September 14, 2020
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