Indo Rama FY06 net up 70%

CORPORATE SCORECARD

Indo Rama Textiles reported 70 per cent increase in net profit for the financial year ended March 2006 to Rs 20.90 crore compared with Rs 12.28 crore last year.

Reduced duty on raw material for the spinning industry helped the company post better numbers during the year.

Net sales stood at Rs 372.98 crore for the year compared with Rs 391.93 crore last year. For the quarter ended March 2006 operating profits grew to Rs 21.09 crore compared with Rs 16.24 crore in the corresponding quarter last year, registering an increase of 29.7 per cent. Net sales stood at Rs 95.64 crore compared with Rs 101.47 crore last year.

"The recent policy announcements by the government and reduction in duty on raw material are going to be beneficial for the spinning industry," said Vishal Lohia, chief executive officer, of the company. About 58 per cent of its turnover constitutes high-end exports to Europe, West Asia and Latin America.

With manufacturing facilities at both Butibori, near Nagpur, as well as at Pithampur, near Indore, it has a total capacity of around 1,23,000 spindles, producing around 40,000 million tonne of synthetic blended yarns.