Indo Rama Synthetics (India) Ltd., India’s largest dedicated polyester manufacturer, has reported that for the quarter ended December 31, 2014, net sales stood at Rs. 659.58 crores as against Rs. 590.21 crores in Q3 of the previous year. EBIDTA for the period stood at Rs. (7.44) crores. The company recorded net loss of Rs. 58.40 crores.
The polyester industry is undergoing a very challenging phase. With the exceptional and unprecedented decline in crude oil prices and therefore the PTA and MEG prices, the company incurred significant losses on inventory.
For the nine months ended December 31, 2014, net sales stood at Rs. 2,102.71 crores as against Rs. 1,935.66 crores in the previous year. EBIDTA for the period stood at Rs. 63.10 crores and net loss stood at Rs. 52.37 crores.
Commenting on the company’s performance, Mr. O.P. Lohia, Chairman & Managing Director, said: “Industry as a whole made huge Investment in polyester fiber capacity in the period 2006 to 2009 when gradually the excise duty was brought down to four per cent, and now the capacities remain unutilized due to higher excise duty of 12% on man-made fiber (MMF), making MMF uncompetitive. It is imperative to rationalise the duty structure for all fibers to bring parity. Excise duties should be six per cent and customs duty on raw materials should be zero. We look forward to the Make-In-India campaign and expect that the first full Budget by the NDA Government will give the desired policy support in order to help the domestic polyester industry in showcasing its capabilities to deliver better returns to all the stakeholders.”