Bombay Dyeing drops after reverse turnaround in Q1

Bombay Dyeing & Manufacturing Company fell 2.6% to Rs 69.50 after the Wadia group company reported a consolidated net loss of Rs 129.25 crore in Q1 June 2020 as against a net profit of Rs 27.65 crore in Q1 June 2019.

Net sales tumbled nearly 86% to Rs 91.17 crore in Q1 June 2020 from Rs 648.57 crore registered in the same period last year. The result was announced after market hours yesterday, 20 July 2020.

The company reported a consolidated pre tax loss of Rs 168.34 crore in Q1 June 2020 as against profit before tax of Rs 11.81 crore in Q1 June 2019.

Bombay Dyeing said COVID-19 impacted business operations, manufacturing, sales and revenue and cashflow of real estate operations. The plant of polyester staple fibre (PSF) division started its manufacturing operations from the first week of June 2020. The company said it has taken into account the possible impact of COVID-19 in preparation of the financial results, including its assessment of going concern assumption and the recoverability of the carrying value of the assets, if any. The full extent to which the pandemic will impact future financial results cannot be reasonably ascertained and will depend on how COVID-19 situation evolves over a period of time, Bombay Dyeing said.

Bombay Dyeing & Manufacturing Company is a holding company engaged primarily in the business of real estate development, polyester staple fibre and retail. The company's segments include real estate, polyester and retail/textile.

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