Polyester manufacturer Indo Rama Synthetics (India) Limited has announced its unaudited financial results for the third quarter and nine months ended December 31, 2016. During the period under review, the company noted a net loss of Rs. 37.95 crore in this quarter as compared to net loss of Rs. 7.76 crore in the corresponding quarter last year.
The net revenue of the company stood at Rs. 623.92 crore as against Rs. 663.25 crore in the third quarter of the previous year. The EBIDTA for the same period stood at Rs. 16.22 crore as compared to Rs. 22.04 crore for the same period last year. While net revenue for the nine months ended December 31, 2016 totalled Rs. 2,099.80 crore as against Rs. 2,065.37 crore in the previous year. The EBIDTA for the period stood at Rs. 8.80 crore as compared to Rs. 56.56 crore in the previous year. Net loss for the review period was Rs. 69.20 crore as compared to net loss of Rs. 51.60 crore during the corresponding period of prior year.
Commenting on the company’s performance, O. P. Lohia, Chairman & Managing Director, Indo Rama Synthetics (India) Ltd. said, “Industry witnessed increase in oil prices in the last 3 months and consequent increase in raw material prices i.e. PTA and MEG, but because of demonization impact the increase in price of raw material could not be passed to customers in same line, but as of now with some improvement in financial markets and also increase in cotton prices the cost is being passed on, also there was sizeable drop in volume terms immediately after demonetization leading to negative financial impact which is now slowly getting back to normal.”
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Indo Rama Synthetics is the country’s largest dedicated polyester manufacturer with an integrated manufacturing complex in Butibori near Nagpur in Maharashtra, with production capacity of 6,10,050 tonnes per annum of polyester staple fibre, filament yarn, draw texturized yarn, fully drawn yarn and textile grade chips.