Indo-Rama regains profit in Q4; losses deepen for fiscal

Polyester-maker Indo Rama Synthetics (India) Ltd on Monday said its net profit for the period the last quarter of 2014-15 rose to Rs.30.84 crore against a loss of Rs.14.17 crores in the corresponding timeframe last year.

Its net income from operations during the review period however fell by 6.4 percent at Rs. 650.73 crore against Rs.695.46 crore in the corresponding fiscal quarter last year. The company's operational EBIDTA (earnings before interest, depreciation, tax and amortization) during the first three months of 2015 stood at Rs.51.40 crore compared to a loss of Rs.0.24 crore for the corresponding quarter in the previous year.

"Now with the lower raw material and finished goods price and increase in demand, we are achieving higher capacity utilization. We are quite buoyant that the overall positivity in the market sentiment and demand will help the company to be back on the growth trajectory in the current financial year," company chairman and managing director O.P. Lohia said in a statement.

During 2014-15, the company's losses widened to Rs.21.53 crore compared to Rs.8.18 crore in 2013-14.

The total net revenue during 2014-15 rose by 4.7 percent at Rs.2,761.38 against Rs.2,637.45 crore in 2013-14.

"The polyester industry saw lots of up and down during the financial year including shortage of raw material, inventory losses due to unprecedented and exceptional fall in the crude oil prices and consequential raw material and finished goods prices, currency volatility and adverse civil and economic situation in the European region and Central Asia, which is a big market... which adversely impacted exports," said Lohia.

He said the government had levied anti-dumping duty on PTA, making the raw material expensive, and also resulting in shortage of raw material and therefore lower capacity utilization.