Morarjee Textiles shows a loss of Rs 590 lakhs for Q1 results

Mumbai, July 30 (UNI) Ashok Pirmal promoted textile company, Morarjee Textiles Limited, has posted a loss of Rs. 590 lakhs on a consolidated basis in the first quarter ended June 30, 2007.

The company's stand alone loss stood at Rs. 601 lakhs, consolidated sales were at Rs. 5,796 lakhs while stand alone sales for the quarter were Rs. 3,630 lakh.

Harsh Piramal, Executive Vice Chairman of the company today said, '' This has been a tough quarter for the company. The loss of water had lead to losses and decrease in production. However in textiles, the loss extends further to the material on machines in various stages of processing. However, we do expect water supply issues to be resolved and will be back on track in the second quarter ''.

The performance in Q1 2007 was affected by the interruption in water supply due to the replacement of a municipal water pipe by the state authorities in the MIDC area at Nagpur. Production at the units was halted for 40 days in this quarter due to lack of water, which is one of the most critical resources in textile production, observed Piramal.

The rupee appreciation has also had an impact on the bottom line. Various fiscal measures are being implemented to insulate future profits from a stronger rupee.

''We expect the Indian currency to remain in the current range.

In addition, through our Men's Cub acquisition, we are lowering our dependency of the dollar by making inroads in the markets of Europe and Japan.'' he added A public listed company, Morarjee Textiles Ltd, is primarily engaged in the businesses of fabric, prints and voile business. The manufacturing unit, located in Nagpur, is the most sophisticated manufacturing plant with contemporary Italian technology being operated in the country.

UNI