Polyester manufacturer Indo Rama Synthetics (India) Ltd earned a net profit of ₹ 35 lakh in the third quarter (October-December 2015) of the on-going fiscal compared to net loss of ₹ 58.40 crore in the corresponding quarter last year.
In the previous quarter the company had suffered net loss of ₹ 43.90 crore due to low demand in the domestic market and falling raw material prices.
“Earlier we were suffering because of falling raw material prices and contracting demand for the company’s products. But prices have stabilised now and domestic demand also increased in the third quarter,” O.P Lohia, Chairman & Managing Director, Indo Rama Synthetics (India) Ltd said.
Although net sales declined in Q3 of the current fiscal to ₹ 585.10 crore from ₹ 648.80 crore in the third quarter of the previous fiscal, in volume terms it increased 12 per cent to 83,175 tonnes. “Sales have gone up in the domestic market in volume terms, but because of lower prices it is lower in value terms. Exports were down in the third quarter, but in the last quarter we are witnessing an improvement,” Lohia said, adding that net profits are expected to improve further in the fourth quarter.
In the third quarter of 2015-16, net revenue stood at ₹ 603.29 crore as against ₹ 661.31 crore in Q3 of previous year. The EBIDTA (earnings before interest, taxes, depreciation, and amortization) for the period stood at ₹ 23.74 crore as compared to a negative ₹ 5.71 crore for the same period.
For the nine months ended December 31, 2015, net loss stood at ₹ 38.64 crore as compared to net loss of ₹ 52.37 during the corresponding period of previous year.
Net revenue stood at ₹ 1,877.98 crore as against ₹ 2,110.63 crore in the previous year. The EBIDTA for the period stood at ₹ 64.51 crore as compared to ₹ 71.02 crore.