Business

Indo Rama Synthetics registers net sales at Rs 659.58 crore

Polyester manufacturer Indo Rama Synthetics (India) Limited, announced its unaudited results for the quarter and nine months ended December 31, 2014. For the quarter ended December 31, 2014, net sales stood at Rs 659.58 crore as against Rs 590.21 crore in Q3 of previous year. The EBIDTA for the period stood at Rs 7.44 crore. The company recorded net loss of Rs 58.40 crore.

The polyester industry is undergoing a very challenging phase. During the quarter due to the exceptional and unprecedented decline in crude oil prices and therefore the PTA and MEG prices, the company incurred significant losses on inventory. For the nine months ended December 31, 2014, net sales stood at Rs 2,102.71 crore as against Rs 1,935.66 in previous year. The EBIDTA for the period stood at Rs 63.10 crore. Net loss for the period stood at Rs 52.37 crore.

Commenting on the company’s performance, O. P. Lohia, Chairman & Managing Director, Indo Rama Synthetics (India) Ltd. said, "Industry as a whole made huge investment in polyester fibre capacity in the period 2006 to 2009, when gradually the excise duty was brought down to 4% and now the capacities remain unutilised due to higher excise duty of 12% on manmade fibre (MMF), making MMF uncompetitive. It is imperative to rationalise duty structure for all fibres to bring parity. Excise duties should be at 6% and customs duty on raw materials should be zero."

"We look forward to the Make In India campaign and expect that the first full budget by the NDA government will give the desired policy support in order to help the domestic polyester industry in showcasing its capabilities to deliver better returns to all the stakeholders," Lohia said.