Indo Rama Q4 Net jumps over two-fold to Rs 42.36 crore

Polyester manufacturer Indo Rama Synthetics India today reported over 2.5 times jump in its standalone net profit at Rs 42.36 crore for the quarter ended March 31 on increased margins due to falling crude oil prices.
The company had posted a standalone net profit of Rs 11.40 crore in the corresponding period a year ago, Indo Rama said in a statement.
However, the company's net sales on a standalone basis declined by 6.72 per cent to Rs 638.02 crore during the January-March quarter as against Rs 684.02 crore in the same quarter of last fiscal.
"The profit has jumped as the input price has come down due to falling crude oil prices. We are getting better margins as raw materials are cheaper now. During the quarter we got better demands," Indo Rama Synthetics Chairman & Managing Director O P Lohia told PTI.

He added: "This quarter volume was almost 17 to 18 per cent higher although net sales declined to Rs 638.02 crore because of lower price of raw materials".
During the quarter under review, the company sold 84,138 tonnes as against 71,563 tonnes in the same quarter of last fiscal.

On the company's future outlook, Lohia said: "The company would continue to grow between 10 to 15 per cent and the turnover would also go up. Moreover, the prices would also stabilise this year".
However, for the financial year ended March 2015, Indo Rama's net loss on a consolidated basis widened to Rs 20.69 crore as against a net loss of Rs 13.55 crore in the previous fiscal.

The company's consolidated net sales were up by 4.95 per cent to Rs 2,741.41 crore in 2014-15 as against Rs 2,611.89 crore in 2013-14.
Meanwhile, in a separate filing, Indo Rama has informed the BSE that its Board has recommended 10 per cent dividend of Rs 1 per share for the financial year 2014-15.
The Board has also approved the appointment of Ranjana Agarwal as a woman director on the Board of the company.
Indo Rama shares today closed 0.28 per cent down at Rs 17.95 per scrip on the BSE.