Birla Cotsyn India Q2 loss widens on demand woes

BCIL, a 50:50 joint venture between Sun flag and Yash Birla Group, saw business taking a dip in the July-September quarter, thanks to market fluctuations of foreign exchange, interest rates and crude oil prices, as net loss widened to Rs 14.20 crore compared to net loss of Rs 11.96 crore in the same period a year ago.

The company, engaged in manufacturing of Synthetic yarn, witnessed sharp decline of 66.26 per cent in its total sales for the July-September quarter which stood at Rs 30.53 crore, dented by zero-profit in the textile-fabrics segment. The textile manufacturer has posted net sales of Rs 90.49 crore in the same period a year ago.

Meanwhile, standalone operating income stood at Rs 26.16 crore (a year-over-year decrease of 69.38%), while standalone other income was at Rs 4.36 crore (a year-over-year decrease of 13%).

Faced with tough market situation, textile (fabric and yarn) segment failed to generate any revenue, due to the slowdown of the overseas economy and increasingly intense price competition for non-apparel products. The non-apparel business continued to experience challenges, including cost hikes reflecting the depreciation of the rupee and escalating labor costs in India.

Fibre2fashion News Desk - India