Indo Rama Synthetics Q3 zooms manifold to Rs 97.38 crore

Buoyed by forex gains, textile firm Indo Rama Synthetics today reported a manifold jump in standalone profit at Rs 97.38 crore for the third quarter ended December 31.
The company had posted a standalone profit of Rs 1.83 crore in same period of previous fiscal.
However, net sales of the company declined to 582.07 crore in the October-December quarter as against Rs 694.61 crore in the same period last fiscal.
"The jump in the profit is because of the forex gains made by us. Over all sales and production was good this quarter. There was decline in the sales because of non-availability of raw materials as Indian Oil's Purified Terepthalic Acid (PTA) plant was closed," Indo Rama Synthetics Chairman & Managing Director O P Lohia told PTI.

Sales declined as the production was low because of non-availability of raw materials, he added.
On the outlook he said that now those problems are being sorted out and prices of raw materials has come down.

"Business climate is going to improve. Raw materials price is going to come down and demand is improving. Now we would give better competition to the cotton textiles," Lohia said.
He further added: "From the next financial year, it would be positively impacting our bottomline."
Indo Rama Synthetics is one of the India's largest dedicated polyester manufacturers with an annual capacity of around 6.10 lakh tonnes per annum.

Shares of Indo Rama Synthetics today closed at Rs 17.26 on the BSE, up 7.81 per cent from its previous close.