Indo Rama Synthetics Q3 loss at Rs 58.40 crore

Polyester manufacturer Indo Rama Synthetics India today reported a standalone net loss of Rs 58.40 crore for the December quarter on account of inventory losses due to falling crude oil prices.
The company had posted a standalone net profit of Rs 97.38 crore in the corresponding period a year ago.
Net sales during the October-December quarter, however, increased 11.46 per cent to Rs 648.80 crore as against Rs 582.07 crore a year ago, Indo Rama said in a statement.
"The loss is due to unprecedented decline in the global crude oil prices, which impacted PTA & MEG prices, which are raw materials. The company incurred significant losses on inventory," Indo Rama Synthetics Chairman & Managing Director O P Lohia told PTI.

However, sales have registered a growth of nearly 20 per cent in volume at 74,000 tonnes during the quarter under review as against 58,000 tonnes in the same quarter last fiscal due to market demand and falling prices.
"Our sales in domestic market have gone up, however, exports have gone down due to global economic impact. European Union is not doing good," he added.

Over the outlook, he said that due to improvement in the overall economic environment, the company is expected to perform better in the coming quarters.
"With growing domestic demand and increased capacity utilisation, we expect a good results in coming quarters," Lohia said.

Shares of Indo Rama Synthetics today closed at Rs 20.45 per scrip on the BSE, down 3.54 per cent from previous close.