Polyester manufacturer Indo Rama Synthetics (India) Ltd’s net profit has increased to ₹ 94.64 crore in the fourth quarter of fiscal 2015-16 compared with ₹ 30.84 crore in the corresponding quarter last year as demand increased and the prices of raw material fell.

In the financial year 2015-16, net profit of the company was ₹.56 crore as against a net loss of ₹ 21.53 crore the year before, according to a company release.

“The domestic market showed an upward trend in terms of higher demand. Moreover, crude oil prices were low and as a result, the prices of raw materials, PTA and MEG, have remained subdued,” according to O P Lohia, CMD, Indo Rama Synthetics.

The company’s initiatives during the year, which include, higher capacity utilisation, cost reduction measures and impetus to high value-added speciality products, are expected to keep it on the growth trajectory from now on, he added.

Net revenue of the company in the fourth quarter of 2015-16, at ₹ 657.67 crore, was higher than ₹ 650.73 crore of revenue earned in the corresponding quarter of last year, while operational EBIDTA (earnings before interest,depreciation, taxes and amortisation) was lower at ₹.28.71 crore compared with ₹ 51.40 crore last year.

In the financial year 2015-16, the company earned a net revenue of ₹ 2,535.65 crore, which was less than the previous fiscal’s net revenue of ₹ 2,761.38 crore. EBIDTA during 2015-16 was ₹ 93.41 crore compared with ₹122.44 crore in the previous year.

The company, however, registered higher sales of 9.39 per cent in term of volume at 3,36,393 tonnes compared with 3,07,517 tonnes in the previous year, the release said.

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