Bombay Dyeing posted a net loss of Rs 142.8 crore in the quarter ended December 31. Ramesh Ranganathan, CEO of Bombay Dyeing, spoke to CNBC-TV18 about the company’s financial performance and growth prospects.
“We have moved over from percentage of completion method to project completion method and by means of that, we have had to reverse our earnings at the beginning of this financial year and as it is primarily on account of completion contract method, we will be recognizing that income and the profits by end of this year as we are expecting the completion of our premium project in Dadar, which is the Island City Centre (ICC) I and II. These are two 60-storey buildings, which are nearing completion and the moment we have the occupancy in place, we will be in a position to recognise the income and the profit. So we will have one of the best years for us at Bombay Dyeing. Primarily because those milestones have not been achieved in Q3 is the reason why you see the results the way they are,” Ranganathan said on Wednesday.
“Almost 65-67 percent of the inventory has been sold. The cash flows that are likely to come out of this would primarily help us retiring the debt. The debt is around Rs 3,500 crore, which will be coming down substantially over the next few quarters,” said Ranganathan.
“We are planning to launch a commercial building in Worli project, which will be close to a million sq ft,” he added.