Bombay Rayon Fashions - one of the vertically integrated textile companies in India has reported subdued performance in the quarter ended September 11. The company has reported 13% dip in the Net Profit at Rs 54.42 crore over 21% increase in the Net sales at Rs 634.09 crore in the quarter under review. Dip in the margins coupled with spike in the interest and depreciation has deteriorated growth in the net profit.
Quarterly Performance:
For the quarter ended September 11, the company has reported 21% increase in the net sales at Rs 634.09 crore. OPM declined 170 bps to 26.6% and curtailed Operating profit up 14% to Rs 168.39 crore. The other income grew robust 61% to Rs 5.84 crore.
Interest cost jumped 48% to Rs 49.47 crore on the back of spike in interest rates. Further depreciation has jumped up 80% to Rs 58.16 crore in quarter under review. Resultantly, PBT tumbled 22% to Rs 66.59 crore. Finally sharp 930 bps decline in effective tax rate has curtailed further de growth in Net profit to 13% to Rs 54.42 crore.
Half yearly Performance:
For the half year ended September 11, the company has reported marginal 3% dip in the Net Profit at Rs 111.23 crore over 21% increase in the topline at Rs 1237.91 crore. OPM was under pressure and declined 120 bps to 25.7%. Dip in the margins coupled with spike in the interest and depreciation cost has eroded profitability in the period under review.
Other Information:
The committee of Directors in their meeting held on September 30, 2011 has allotted 25,00,000 equity shares to a promoter company on exercise of conversion option for warrants in to equal no of equity shares, resulting into increase in paid up capital from Rs 132.10 crore to Rs 134.60 crore.
Bombay Rayon Fashions: Financial Results
| 1109 (3) | 1009 (3) | Var % | 1109 (6) | 1009 (6) | Var % | 1103 (12) |
| Net Sales | 634.09 | 523.18 | 21 | 1237.91 | 1025.88 | 21 | 2254.84 |
| OPM (%) | 26.6 | 28.3 | | 25.7 | 26.9 | | 24.0 |
| Operating Profit | 168.39 | 148.03 | 14 | 318.05 | 275.98 | 15 | 540.86 |
| Other income | 5.84 | 3.62 | 61 | 10.21 | 5.82 | 76 | 23.49 |
| PBIDT | 174.22 | 151.65 | 15 | 328.26 | 281.80 | 16 | 564.35 |
| Interest | 49.47 | 33.33 | 48 | 93.41 | 64.30 | 45 | 145.21 |
| PBDT | 124.75 | 118.32 | 5 | 234.85 | 217.50 | 8 | 419.15 |
| Depreciation | 58.16 | 32.40 | 80 | 97.31 | 61.41 | 58 | 136.67 |
| PBT | 66.59 | 85.91 | -22 | 137.54 | 156.09 | -12 | 282.48 |
| Taxation | 12.17 | 23.72 | -49 | 26.31 | 41.73 | -37 | 55.78 |
| Net Profit | 54.42 | 62.19 | -13 | 111.23 | 114.36 | -3 | 226.70 |
| EPS (Rs)* | 16.2 | 18.5 | | 16.5 | 17.0 | | 16.8 |
*EPS on paid up equity of Rs 134.60 crore, Face value of Rs 10
Figures in Rs crore
Source: Capitaline Corporate Database |