Sintex Industries, one of the leading plastic products makers in India has registered a drop of 23 per cent in its profits after tax (PAT) at Rs 79.83 crores for the second quarter ended September 30, 2011 against Rs 98.41 crore registered in the corresponding period last year.
The company attributed the fall in PAT to exceptional loss on foreign currency convertible bonds (FCCB).
"On account of global economic recessionary fears and currency volatility witnessed in Rupee, Sintex results reflected the impact of strengthening US Dollar against Indian rupee on utilised amount of FCCBs for the quarter under review," the company said in a statement.
Commenting on the results, Amit Patel, managing director, Sintex Industries mentioned that company's subsidiaries are likely to perform well and add new customers for India in the near future.
"The exceptional strengthening of US Dollar during the quarter under review has resulted in a dent in our profits, this is a national loss and does not merit any cash outflow," said Patel.The company's consolidated net income from operations stood at Rs 1,153.6 crore for the quarter under review up from Rs 920.6 crore in the same period last year.
The first half of the financial year (April-September) witnessed net sales at Rs 2,263 crore against Rs 1,828.6 crore in the corresponding period last year.
