Indo Rama Synthetics narrows loss to Rs 16 cr

Higher sales and margin helped Indo Rama Synthetics (India) narrow its net loss to Rs 16 crore in the second quarter of the current fiscal.
The second largest polyester maker in the country had reported Rs 61.36 crore net loss in the July-September quarter of the last fiscal, it said in a statement.
The subdued bottomline during the reporting quarter was mainly due to a Rs 13 crore inventory loss and a Rs 14 crore forex loss, said the company's Executive Director Vishal Lohia.
Finance costs of the company also went up to Rs 11.55 crore from Rs 8.71 crore a year earlier. Net debt of the firm now stands at Rs 190 crore. Indo Rama Synthetics (India) plans to replace part of it to low-cost debt.

The operational EBIDTA for the period stood at Rs 29.98 crore compared to Rs 15.55 crore a year earlier.
Net sales of the company stood at Rs 716.81 crore as against Rs 619.98 crore in the same quarter of last fiscal. Exports contributed Rs 170 crore of the total revenue.

The company has five plants spread over 250 acres at Butibori, near Nagpur in Maharashtra with a total capacity of six lakh tonnes per annum.
Capacity utilisation of the company during the quarter stood at around 60 per cent. It plans to ramp up one facility for manufacturing of special quality products.

"The polyester industry is undergoing a very challenging phase due to the economic environment created after imposition of Anti-Dumping Duty on PTA by the government which has resulted in an increase in the cost of raw material," Lohia said.
"We look forward to positive policy framework under the 'Make In India' campaign and expect policy support in order to help domestic polyester industry in showcasing its capability and prowess to deliver better returns to all stakeholders," he added.