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Indo Rama reports Q3 net loss of Rs 32 cr

Press Trust of India / New Delhi Feb 03, 2012, 16:51

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Indo Rama Synthetics (India) Ltd today reported a net loss of Rs 32.11 crore for the quarter ended December 31, 2011, primarily due to foreign exchange losses during the quarter.

BSE NSE  LTP 23.35 23.10   Chg 0.4 -0.15   Chg(%) 1.74% -0.65%

Results Snapshot more  Sales 2943.27  Total Expenses 3010.58  Net Profit 31.96  EPS(TTM) 151.82  Equity 2.11

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The company had posted a net profit of Rs 47.08 crore for the third quarter of the previous fiscal, Indo Rama Synthetics said in a statement.

Total income of the company for the third quarter ended December 31, 2011, stood at Rs 768.64 crore, compared to Rs 656.78 crore for the corresponding period of the previous fiscal.

"The loss was primarily due to forex fluctuation, including  mark-to-market losses aggregating to Rs 75 crore as the rupee depreciated to Rs 53 as compared to the US dollar," the company said.

The company said it is in the process of expanding its production capacity of Draw Texturised Yarn (DTY) from the earlier capacity of 64,800 tonnes to 98,145 tonnes by installation of 14 new machines, out of which three machines have already been successfully commissioned.

As a strategic move, the company recently inked a pact with Thailand-based Indorama Ventures to set up a integrated facility in India to produce PTA (Purified Terephthalic Acid), PET (Polyethylene Terephthalate) and PSF (Polyester Staple Fibre).

With an overall capacity of two million tonnes per annum, the facility would entail an investment of nearly Rs 3,500 crore. On commissioning, the plant will help serve both Indian customers and expand the company's market globally.

"The company has aggressive plans to exploit export market opportunities as well. Our recently announced backward integration plans are aimed at capturing and delivering higher value to our shareholders," Indo Rama Synthetics CMD O P Lohia said.

Shares of Indo Rama Synthetics settled at Rs 33.70 on the BSE today, down 2.03 per cent from their previous close.