Indo Rama optimistic on future growth

Indo Rama Synthetics (India) Ltd., India’s largest dedicated polyester manufacturer, has for the quarter ended March 31, 2016, reported net revenue of Rs. 657.67 crores as against Rs. 650.73 crores for Q4 of the previous year. The operational EBIDTA for the period stood at Rs. 28.71 crores as compared to Rs. 51.40 crores. The net profit for the quarter ended March 31, 2016, was Rs. 94.64 crores (Rs. 30.84 crores).

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Mr. O. P. Lohia, Chairman & Managing Director, Indo Rama Synthetics (India) Ltd.

For the financial year ended March 31, 2016, the net revenue stood at Rs. 2,535.65 crores as compared to Rs. 2,761.38 crores in the previous year. The operational EBIDTA is Rs. 93.41 crores (Rs. 122.44 crores). The net profit of the company was Rs. 56 crores for 2015-16 as against net loss of Rs. 21.53 crores in the previous year.

The company sales were 9.39 per cent higher in terms of volume at 3,36,393 tons vis-a-vis 3,07,517 tons in the previous year. Domestic sales volume increased by 19.55 per cent from 2,40,083 tons to 2,87,021 tons.

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The specialty products launched by the company during 2015-16 are expected to penetrate the market on a larger scale in the coming quarters. Further, the company hived off its 30 mw wind farm business through the sale of its step-down subsidiary. The sale is in sync with the company’s objective of focusing on its core polyester business.

Commenting on the company’s performance, Mr. O.P. Lohia, Chairman & Managing Director, Indo Rama Synthetics (India) Ltd., said: “The polyester industry saw a comparatively better year in 2015 with the domestic market showing an upward trend in terms of higher demand. Moreover, crude oil prices were low during the year. As a result, the prices of raw materials, i.e., PTA and MEG, have remained subdued. Moreover, our initiatives during the year, which include higher capacity utilization, cost reduction measures and impetus to high value-added specialty products, are expected to propel the company on a growth trajectory from now onwards.”