Textile firm Indo Rama Synthetics (India) today reported a profit after tax (PAT) of Rs 47.08 crore for the third quarter ended December 31, 2010, against a meagre Rs 9 lakh it had registered during the same period previous fiscal.
Net sales of the company stood at Rs 651.88 crore for the third quarter ended December 31, 2010, while the same was Rs 613.33 crore during the same period last fiscal, the company said a statement.
"Our thrust on value added products and optimisation of inventory levels have contributed to our good performance. Also the market conditions have improved for the better," Indo Rama Synthetics (India) Chairman and Managing Director O P Lohia told PTI.
The company's board, which met today, has recommended an interim dividend of 10% a share to its shareholders.
For the nine months ended December 31, 2010, the company's PAT stood at Rs 38.73 crore, while the same was Rs 2.10 crore in the same period last fiscal.
In order to expand its capacity, the company has installed eight new Draw Texturised Yarn (DTY) machines to take the capacity from the existing 43,800 tonnes per annum, to 64,800 tonnes per annum.
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"Further, eight more DTY machines will be added which will be operational in phases from July 2011 onwards and complete by end of the year, and will take the total DTY capacity to 84,000 tonnes per annum," Lohia said.
To achieve better cost efficiency, the company is also replacing the existing heat treatment based on furnace oil to coal based with a project cost of Rs 73 crore.
Shares of Indo Rama Synthetics today closed at Rs 66.65 on the Bombay Stock Exchange, up 10.35% from its previous close.