Indo Rama Synthetics (India) Ltd.’s net revenue for the quarter ended December 31, 2015, stood at Rs. 603.29 crores as against Rs. 661.31 crores in Q3 of the previous year. EBIDTA for the period was at Rs. 23.74 crores. The company has reported a net profit of Rs. 0.35 crores in this quarter as compared to net loss of Rs. 58.40 crores in the corresponding quarter last year.
For the nine months ended December 31, 2015, net revenue stood at Rs. 1,877.98 crores as against Rs. 2,110.63 crores in the previous year. EBIDTA for the period stood at Rs. 64.51 crores as compared to Rs. 71.02 crores. Net loss for the period stood at Rs. 38.64 crores (Rs. 52.37 crores).
Indo Rama registered higher sales of 12 per cent in terms of volume at 83,175 tons as compared to 74,442 tons in the corresponding quarter of the previous year. Domestic sales volume increased by 27 per cent from 56,145 tons to 71,574 tons. However, export sales have come down from 18,297 tons in the corresponding quarter of last year to 11,601 tons due to sluggish world market demand.
The company has taken several initiatives to improve its operational performance. Recently, all the continuous polymerization plants at its site at Butibori near Nagpur are running after several years. This will result in improved margins in the coming quarters. The company is expecting further growth as it has started offering a larger variety of products in the market, and the export market is also showing some signs of improvement.
Commenting on the financial performance, Mr. O.P. Lohia, Chairman & Managing Director, Indo Rama Synthetics (India) Ltd., said: “Our results for this quarter have started to fall in line with our objective to make the company profitable. The cotton production is expected to remain low in this calendar year, which will help us in improving our margins. The current rate of excise duty on man-made fiber is hurting the industry. In order to keep the growth momentum of the industry, the association of MMF manufacturers has made a representation to the Government to reduce excise duty on MMF in the Union Budget 2016. We are hopeful that the same shall be considered favorably as India needs to create an environment of growth and employment generation opportunities, which are being supported by the industry.”