Bombay Rayon suffers net loss of Rs 21.47 cr

Net loss of Bombay Rayon Fashions stood at Rs 21.47 crores in the quarter ended December

2013 as against net profit of Rs 47.20 crores during the previous quarter ended December 2012. Sales rose 0.51 percent to Rs 822.92 crores in the quarter as against Rs 818.74 crores during the previous quarter ended December 2012.

In the second quarter, the company reported a net loss of Rs 104.85 crores against the net profit of Rs 43.58 crore in the corresponding quarter of previous fiscal. The loss, however, narrowed significantly from Rs 411.75 crores reported in the preceding quarter ended June 30, 2013.

Losses at the company’s wholly owned subsidiary BRFL Italia Srl, Italy, had also hit the bottom-line of the company. Due to economic slowdown in Europe and rising costs, BRFL Italia has been shutting down its loss making stores and is in the process of rationalizing the business.

In its investors’ presentation released at the end of March 2013, the company had said, “Due to time required in building efficiency amongst the workers, it was not possible to improve the garment manufacturing capacity utilization immediately.”