Polyester manufacturer Indo Rama Synthetics (India) Ltd’s net loss widened to ₹43.90 crore in the second quarter of the current fiscal compared to ₹16.02 crore in the corresponding quarter last year as demand for the item remained low in the domestic market and China’s cheap exports pushed global prices down.

“Sluggish demand for the company’s products and fall in raw material prices resulted in high level of finished goods stocks and inventory losses. China is also dumping its products in the global market, which is affecting the international business,” an official press release issued by the company stated.

Further, the higher excise duty for man-made fibre continues to adversely impact demand, the release added.

For the quarter ended September 30, 2015, the company achieved net revenue of ₹ 632.21 crore, which was lower than ₹ 730.86 crore in the corresponding quarter of the previous year.

The EBIDTA (earnings before interest, taxes, depreciation, and amortization) for the quarter was        ₹ 8.62 crore as compared to ₹ 33.01 crore in the corresponding quarter last year.

The company registered higher sales volume of 80,693 tons as compared to 73,942 tons in the corresponding quarter of the previous year. While domestic sales volume increased by 25 per cent during this period from 55,928 tons to 69,913 tons, sales was lower in the export markets due to sluggish demand in the world market.  

During the quarter, the economic environment of the business was adversely impacted due to crash in crude oil prices, huge volatility in the foreign exchange market and depreciation of rupee, the release said.

“The capacity for draw texturised yarn, a high value added product has also been expanded during the quarter, which will lead to higher capacity utilisation for partially oriented yarn and improvement in overall margins in the coming time, the release added.  

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