Bombay Dyeing & Manufacturing Company Ltd Share Price – NSE /  BSE

Textiles, Small Cap

The agency has reaffirmed the company’s long-term rating at 'CRISIL BBB+’ and the short-term rating at 'CRISIL A2+’.

CRISIL Ratings stated that the outlook revision factors in CRISIL’s expectation of improvement in business profile driven by steady growth in revenue and improvement in operating margin in the polyester stable fiber (PSF) business.

The expected improvement in operating margins is driven by cost efficiency measures being undertaken to save power costs and improve realizations through value addition, reasonable investments in capex in the cost efficiency projects through fiscal 2025 and fiscal 2026 is expected.

Further, the company is expected to launch fresh real estate project in H1 FY 2026 and customer bookings and response and hence cash flows from it will also be monitored.

The company’s financial profile and liquidity continues to be strong with no debt and surplus cash and cash equivalents including liquid investments of about Rs 1,300 crore as on 30 September 2024, with significant cash remaining on the books even with the launch of the real estate projects in FY 2026.

The ratings reflect diversified revenue profile and experience management, strong market position in the polyester staple (PSF) segment, healthy track record of executing real estate projects, and strong financial risk profile.

These strengths are partially offset by it low operating margins in PSF segment, susceptibility to volatility in raw material prices and forex fluctuations, and exposure to cyclicality inherent in the Indian real estate industry.

Bombay Dyeing and Manufacturing Company is a flagship company of Wadia Group. The company is is engaged in three business divisions, i.e., manufacturing polyester staple fiber (PSF), real estate and textile retail business.

The scrip shed 0.28% to currently trade at Rs 195.35 on the BSE.

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Bombay Dyeing & Manufacturing Company has received reaffirmation in credit ratings and revision in outlook on long term bank facilities and fixed deposit of the company to 'Positive' from 'Stable' as under:

Total bank loan facilities rated - Rs 501 crore

Long term rating - CRISIL BBB+/ Positive (outlook revised from 'Stable', rating reaffirmed)

Short term rating - CRISIL A2+ (reaffirmed)

Rs 0.3 crore fixed deposits - CRISIL BBB+/ Positive (outlook revised from 'Stable', rating reaffirmed)

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Net profit of Bombay Dyeing & Manufacturing Company reported to Rs 393.02 crore in the quarter ended September 2024 as against net loss of Rs 51.99 crore during the previous quarter ended September 2023. Sales declined 13.61% to Rs 380.63 crore in the quarter ended September 2024 as against Rs 440.60 crore during the previous quarter ended September 2023.

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Bombay Dyeing& Manufacturing Company will hold a meeting of the Board of Directors of the Company on 12 November 2024

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