The Bombay Dyeing and Manufacturing Company Limited is a holding company engaged in the business of cotton and blended cotton textiles. The company manufactures bedding, quilts, pillows and sleeping bags. It is also involved in real estate activities and manufacture of polyester staple fibre (PSF). The company’s segments comprise oftextiles, polyester and real estate.
The company offers single bed, double bed, king size bed, bath towel, hand towel, face towel, towel sets, bathrobe, dohar, duvet cover, blankets, comforters and Diwan sets. Its offerings include brands such as Snow White, Tulip, Santino, Reverie, Super Ultrx, Honeycomb, Floral Fiesta, Cardinal, Eternia, Spree, Rasso and Joanna. The company’s plants include a textile processing unit and PSF plant located in Maharashtra.
Archway Investment Company Limited is a subsidiary of the company.
On the financial front, Bombay Dyeing & Manufacturing posted a 30.79 per cent increase in its net sales to ₹622.86 crore in the first quarter of FY18 as against ₹476.22 crore in the same quarter of the previous fiscal. The company’s PBIDT rose by 8.50 per cent to ₹66.98 crore in the first quarter of FY18 compared to ₹61.73 crore in Q1FY17.
Further, the company’s net loss decreased from ₹43.58 crore in Q1FY17 to ₹32.71 crore the first quarter of FY18. On an annual basis, the company’s net sales decreased slightly by 7.57 per cent to ₹1,668 crore in FY17 as against ₹1,804.72 crore in the previous fiscal. The company’s PBIDT declined by 48.42 per cent to ₹99 crore in FY2017 compared to ₹191.93 crore in the previous fiscal. However, the company’s profit after tax grew to ₹41.71 crore in FY17 against net loss of ₹85.24 crore in FY2016.
However, the stock is exhibiting a slumped performance on the bourses. We recommend the reader-investors to Exit the stock.