Himatsingka hit by high raw material costs, forex loss

Bangalore-based textile company Himatsingka Seide Ltd has posted a loss of Rs 16.67 crore in the last financial year compared with a profit of Rs 11.79 crore reported during the corresponding period last year. Loss reported during FY11 is attributed to factors like rise in raw material prices along with loss in foreign exchange incurred by the company.

However, total income rose by 14.6 per cent to Rs 1,232.67 crore in the last fiscal as compared with Rs 1,075.34 crore reported earlier. Operating profit of the company declined by 22.8 per cent to Rs 34.81 crore in this period.

“Our consolidated performance has been impacted by the unprecedented increase in raw material prices during the year. Not withstanding the raw material impact, our manufacturing and distribution business registered a stable performance during the fiscal.We have seen strong growth in North America and consistency in European and Asian markets,” Shrikant Himatsingka, executive director of Himatsingka Seide said.

 

The textile firm registered a 17.9 per cent increase in revenue to North America represented by brands and private label lines to Rs 20.05 crore in the last financial year as compared with Rs 17 crore reported an year earlier.

Similarly, manufacturing revenues of the company rose by 9.23 per cent to Rs 508 crore in the last financial year as compared with Rs 465.11 crore reported in FY10. Retail and distribution revenue in Asia through its ‘Atmosphere’ brand declined by 8.3 per cent to Rs 47.20 crore in FY11.

The textile firm also saw a marginal rise of 0.67 per cent in its revenue from Europe to 19.41 million euro in the last fiscal.