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While the rupee’s depreciation against the dollar in recent times could offer some respite to home textile majors, the near-term outlook for the sector as a whole is far from promising.
Going into FY19, revenue contribution from brands, asset turns of existing and new capacities, and regional diversification by foraying into new geographies will be pivotal to the company's success.
Operating leverage, backward integration, capacity addition (for terry towels), risk diversification, and increased emphasis on sale of brands are the key moats that make Himatsingka Seide a good investment proposition.
Net Sales are expected to increase by 9 percent Y-o-Y (up 7.2 percent Q-o-Q) to Rs. 573.5 crore, according to Edelweiss.
The company continues to leverage on its fundamental strengths optimally, as evident from the numbers in the quarter gone by.
Net Sales are expected to increase by 5.2 percent Q-o-Q (up 27.9 percent Y-o-Y) to Rs 614.5 crore, according to Edelweiss. Himatsingka Seide to report net profit at 48.8 crore up 7.6% year-on-year.
In an interview to CNBC-TV18, Shrikant Himatsingka, MD & CEO of Himatsingka Seide shared details on the quarterly earnings.
The company will commission a new sheeting plant to double its manufacturing capacity by July end, which will utilise around 45-50 percent capacity in FY17, says Shrikant Himatsingka, MD and CEO of Himatsingka Seide.
Himatsingka Seide's robust first-half earnings run is expected to continue in the second and high growth in both profit and EBITDA is expected to continue, says Shrikant Himatsingka, Executive Director of the firm.