 "Indo Rama Synthetics eyes increase in share of specialty products to revenue")
Posting a 207 per cent growth in its net profit for the fourth quarter ended March 31, 2016 at Rs 94.64 crore, the company attributed several factors including rise in share of specialty products for the financial performance. For the corresponding period last year, the company's net profit for the quarter stood at Rs 30.84 crore.
"There were not only improvement in cost efficiency measures that begun showing results, but also the investments in value added products have begun yielding returns. In the new financial year, we expect the share of value added products to our revenue to rise further. Also, lower oil prices have kept our products competitive in the market leading to better bottomline," said O P Lohia, chairman and managing director, Indo Rama Synthetics (India) Ltd.
For the quarter ended March 31, 2016, the company's net revenue stood at Rs. 657.67 crore as against Rs. 650.73 crore of Q4 of the previous year.
For the financial year ended March 31, 2016, the net revenue stood at Rs.2,535.65 crore as compared to Rs.2,761.38 crore in the previous year. The Operational EBIDTA is Rs.93.41 crore as compared to Rs.122.44 crore in the last fiscal year. The net profit of the Company was Rs.56.00 crore for the financial year 2015-16 as against net loss of Rs.21.53 crore during the previous financial year.
The company registered higher sales of 9.39 per cent in term of volume at 3,36,393 tonnes vis-a- vis 3,07,517 tonnes in the previous year. Domestic sales volume increased by 19.55 per cent during this year from 2,40,083 tonnes to 2,87,021 tonnes.
Commenting on the company's performance, Lohia said that the polyester industry saw a comparatively better year in 2015 with the domestic market showing an upward trend in terms of higher demand.
Also Read
"Moreover, crude oil prices were low during the year. As a result, the prices of raw materials, i.e., PTA and MEG have remained subdued. Moreover, our initiatives during the year, which include, higher capacity utilisation, cost reduction measures and impetus to high value added specialty products, are expected to propel the company on a growth trajectory from now onwards," Lohia added.
The specialty products launched by the company during FY16 are expected to penetrate the market on a larger scale in the coming quarters. Further, the company hived off its 30 Mw wind farm business, through the sale of its step down subsidiary. The sale is in sync with the company's objective to focus on their core business of polyester.
One of the largest dedicated polyester manufacturer, Indo Rama Synthetics (India) Ltd. runs an integrated manufacturing complex in Butibori near Nagpur in Maharashtra, with production capacity of 610,050 tons per annum of Polyester Staple Fibre, Filament Yarn, Draw Texturized Yarn, Fully Drawn Yarn and Textile grade Chips.