Indo Rama Synthetics (India) Ltd has reported a net profit of Rs 18.74 crore for 2000-01 against a loss of Rs 7.65 crore in 1999-2000. During the period, its sales improved 13 per cent from Rs 1,751.36 crore to Rs 1,986.03 crore.
Indo Rama managing director O P Lohia said that the profit for the year would have been higher by Rs 24.90 crore but the company had to make a provision of Rs 20.44 crore for the valuation of inventory and Rs 4.46 crore for the valuation of investments.
The accumulated losses on the company's books stand at Rs 167 crore. As a result, the company has not declared any dividend for the year.
More From This Section
Lohia also disclosed that on March 26, 2001, the company had allotted shares worth Rs 10.27 crore to the Industrial Finance Corporation of India in lieu of loans advanced by the financial institution.
Exports for the year stood at Rs 603 crore, up 46 per cent from last year's Rs 413 crore.
On the company's performance this fiscal, Lohia said that the impact of the 7.5 per cent cut in the import duty on PTA would be reflected in the performance. The savings could be in excess of Rs 40 crore. He also hopes to save at least 25 per cent on the interest cost of Rs 173.85 crore.
According to him, while the demand for polyester is expected to grow at a rate of around 10 per cent, the supply is not expected to increase as no new capacities are being planned. This will help keep the prices up.
Indo Rama is also looking at increasing its polyester capacity of 250,000 tonne per annum by 10 per cent through de-bottlenecking at a nominal investment of less than Rs 10 crore.
The company has appointed Accenture to undertake an audit and recommend measures to strengthen the company's customer relationship management practices.