Mumbai-based Mandhana Industries posted a sharp drop in net profits in quarter ending June 30, 2012, when compared with the previous quarter and also the corresponding quarter ending June 2011.
Net profits at the textile major fell to Rs 104.7 million in quarter ended June 2012 from Rs 155.1 million in the corresponding quarter of June 2011, down 32.39 percent and also down 55 percent from Rs 232.9 million in quarter ending March 31, 2012.
In the reporting quarter ,revenues fell marginally to Rs 2.05 billion, down 3.47 percent from Rs 2.12 billion in April to June 2011. However, sales fell considerably by 33.13 percent when corresponded with its previous quarter ending March 31, 2012.
“Historically it has been a trend that in any of the quarters ending March 31, sales have always been on the higher side, as exports leap in that month. Correspondingly, quarter ending June 30 has always been the weakest”, Mr Mitesh Shah – Senior VP (Finance & Corp Affairs) at Mandhana told fibre2fashion.
Speaking about decline in net profits, he explained, “Our operating as well as gross margins are high, however net profits have dipped as we have made provision for market to market (M-to-M) in forward contracts and also due to provision of repaying foreign currency loans”.
He however expects better performance in the current as well as future quarters and expects the apparel division to be the new growth driver as new apparel production capacities will be commissioned.
Speaking about ‘Be Human’ brand, he said, “We have launched the brand in Middle East and a few countries in Europe and it has received good response. We are launching retail outlets in India in the last week of August. These stores will carry the full range inclusive of menswear, womenswear and childrenswear”.
Fibre2fashion News Desk - India
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