Indian textiles giant Bombay Dyeing is in the red for the first quarter ended 30 June. The company reported a consolidated net loss amounting to Rs. 129 crore or US $ 17.3 million as opposed to a net profit of Rs. 28 crore earned for the same period last year.
The net loss reflects the gross fall in sales due to the coronavirus pandemic leading to a decline of 86 per cent in consolidated net sales to Rs. 91 crore, compared to sales of Rs. 649 crore it had garnered in the first quarter of FY19-20.
This led to a 115 per cent decline in the company’s EBITDA to Rs. 22 crore for the quarter under review. The same period last year had posted an EBITDA of Rs. 143 crore.
Posting a statement along with the quarterly report, Bombay Dyeing said, “COVID-19 has impacted business operations of the company, its manufacturing, sales, as also revenue of real estate operations, cash flows and more. The plant of PSF division started its manufacturing operations from the first week of June 2020 only.”
They also expressed that the full extent of the impact on future financial results cannot be ascertained at the moment but the company will work hard to keep fighting the situation.
Bombay Dyeing currently retails through over 3,000 MBOs, 400 franchise stores and 27 company-owned outlets.
