Bombay Rayon Q2 net profit dips 12.5%

Mumbai-based vertically integrated textile company,

Bombay Rayon Fashions, has registered a 12.5 per cent year-on-year dip in its net profit for the second quarter of current fiscal that ended on September 30, 2011. The company posted a net profit of Rs 540 million during July-September period against a net profit of Rs 620 million during the same quarter last fiscal. The net sales of the company, however, increased to Rs 6.34 billion during the three-month period of 2011, compared to Rs 5.23 billion recorded during the corresponding period of 2010, showing an increase of 21.2 per cent.

During the first six months of 2011-12, Bombay Rayon’s net profit declined marginally to Rs 1.11 billion, as against its net profit of Rs 1.14 billion posted during the first half of previous fiscal. Its turnover during April-September period rose to Rs 12.38 billion compared to Rs 10.26 billion achieved during the first half of 2010-11.

Established in 1986, Bombay Rayon is engaged in manufacturing a wide range of fabrics and garments. It has active tie-ups, joint ventures and subsidiaries, especially in European countries including Netherlands, Italy and the UK. Netherland-based AAA United BV has recently made an open offer to acquire an additional 20 per cent stake in Bombay Rayon at an offer price of Rs 300 per share, based on the offer price, the size of the open offer works out to Rs 853 crores. In 2009, AAA United BV, promoted by European fashion retailer Bestseller had acquired 20.67 per cent stake in the company for Rs 322 crores. Currently, it owns 14.07 per cent stake in the company.