INDIA: Bombay Dyeing Results Disappoint

The Bombay Dyeing & Manufacturing Co, founded in 1879, shaved two thirds off its net profit H1 2000-2001 ending 30September. Net sales rose from US$84.9m to US$85.7m, but net profit after depreciation, severance payments and tax fell from US$5.6m to US$2.1m. Manufacturing operations may have resulted in a loss, and Other Income from holdings and money market operations seems to have saved the company.Mr S S Kelkar, executive director, finance, attributed the lower results to a 15 per cent rise in raw materials costs (due to higher crude oil prices) at its DMT division. Higher electricity prices also affected its textile mill in Bombay city. The company has closed its facililty at Roha in Maharashtra and the yarn plant at Jamnagar in Gujarat. Both are up for sale, either machinery-only or as a package with land and buildings.Bombay Dyeing was in the news recently for Arun Bajoria's spectacular but irregular attempt to corner its shares, which has been stayed by the authorities pending investigations. Mr Kelkar said that the jute baron and real estate speculator began buying up shares as early as March this year. The market is awaiting the reaction of the authorities with keen interest.The company has 600-plus showrooms selling exclusively Bombay Dyeing products, and exports to the US, EEC countries, Australia and New Zealand.