As a part of its restructuring process, Bombay Rayon Fashions has declared a lock-out at its mill division located at Dodaballapur, Bangalore. The company had also announced that pursuant to the Clause V of the company's code of conduct for prevention of Insider Trading, the trading window of the company would remain closed up to March 20, 2014.
Net loss of Bombay Rayon Fashions stood at Rs 21.47 crores in the quarter ended December 2013 as against net profit of Rs 47.20 crores during the previous quarter ended December 2012. Sales rose 0.51 per cent to Rs 822.92 crores in the quarter as against Rs 818.74 crores during the previous quarter ended December 2012.
In the second quarter, company reported a net loss of Rs 104.85 crores against the net profit of Rs 43.58 crores in the corresponding quarter of previous fiscal. The loss, however, narrowed significantly from Rs 411.75 crores reported in the preceding quarter ended June 30, 2013.
Losses at the company's wholly owned subsidiary BRFL Italia Srl, Italy, had also hit the bottom-line of the company. Due to economic slowdown in Europe and rising costs, BRFL Italia has been shutting down its loss making stores and is in the process of rationalizing the business.