Polyester manufacturer Indo Rama Synthetics India today reported 77.73 per cent decline in its standalone net profit at Rs 4.91 crore for the first quarter ended June 30, 2015 on account of lower selling price because of falling global crude oil rates.
The company had posted a standalone net profit of Rs 22.05 crore in the corresponding period a year ago, Indo Rama said in a statement.
The company's total income from operations, on standalone basis, declined by 10.57 per cent to Rs 642.48 crore during the quarter under review as against Rs 718.47 crore in the same quarter of last fiscal.
"The sales volume for the quarter increased to 79,088 tonnes as compared to 75,573 tonnes in the corresponding period of last financial year, reflecting an increase of 4.65 per cent on q-o-q basis" Indo Rama Synthetics Chairman & Managing Director O P Lohia told PTI.
The continuous fall in global crude oil prices in the last several months has led to a reduction in raw material and selling prices for the products of the company.
On the outlook, he said: "We expect that margins would be improved and production would increase in the coming quarters of the current fiscal as capacity utilization is going to increase further from current 65 per cent due to availability of the raw materials".
Indo Rama Synthetics' shares today closed 4.87 per cent down at Rs 35.15 apiece on the BSE.
