Home / Knowledge / News / Textiles / Indo Rama Synthetics delivers inspiring sales performance in Q2
Indo Rama Synthetics delivers inspiring sales performance in Q2
Nov '11
Indo Rama Synthetics (India) Limited announced its un-audited results for Q2 and H 1 ended September 30, 2011. Overall, in H1 2011-12 the company delivered a sales performance of Rs 1,494.06 crore, an increase of 8.4% over Rs 1,378.06 crore in H1 of previous year. The Profit after Tax stood at Rs 28.60 crore as compared with Loss after Tax of Rs 8.35 crore in H1 of previous year.

Gross sales for Q2, 2011-12 stood at Rs 826.78 crore, an increase of 9.4% over Rs 755.87 crore in Q2 of previous year. The Company recorded Loss after Tax at Rs 22.84 crore in the quarter as compared to Profit after Tax of Rs 4.18 crore in Q2 of the previous year.

The Quarterly results were adversely impacted by an exceptional item - Loss on account of sudden fall of the rupee aggregating to Rs 62.81 cr.

During the quarter, the company delivered an impressive sales performance despite continued softness in demand in the textile industry. The cotton prices that had slumped in Q1 2011-12 remained depressed all through Q2 2011-12. This had an adverse impact on demand for Polyester. The weak rupee put a downward pressure on the margins as the price of raw materials went up.

The Company expects to see improvement in demand in Q3 with replenishing of depleted inventory levels. On the positive side, the weak rupee is likely to support an increase in exports. The volatility in raw materials seen in Q2 2011-12 is expected to stabilize.

The Company continued its focus on cost reduction projects in order to improve margins. The company had planned to replace existing heat treatment media based on furnace oil to coal at a project cost of Rs 73 crores. A substantial part of this project was completed and commissioned in October 2011.

The balance will be commissioned later in the month in November 2011. The project to add 11MW of Power to utilize the spare boiler capacity for captive consumption is on track and will be commissioned by Q3 FY 12.

The company is in the process of expanding the production capacity for its value added product Draw Texturized Yarn (DTY) from existing 64,800 Tonnes to 98,145 Tonnes by installation of 14 new machines. This project is also on track and 3 machines have already been delivered.

Commenting on the results, Mr. 0 P Lohia, Chairman and Managing Director said:
"We have delivered an impressive sales performance notwithstanding the macro-economic challenges faced by the textile and allied industries. We remain focused on our cost reduction projects and are increasing the value added product capacities to beat margin pressures and stay competitive. We will continue to grow the business by developing new export markets and expanding our domestic market share. The company is buoyant on the prospects of the Polyester business with increase in substitution of cotton by Polyester and discovery of new applications."

Indo Rama Synthetics (India) Limited is India's largest dedicated polyester manufacturer with an Integrated Manufacturing Complex at Butibori near Nagpur in Maharashtra, with capacity of 6,10,050 tonnes per annum of Polyester Staple Fibre, Filament Yarn, Draw Texturized Yarn, Fully Drawn Yarn and Textile grade Chips.

Indo Rama Synthetics (India) Limited

Must ReadView All

Information Technology | On 28th Mar 2017

Intex Consulting signs partnership with Kawan Era Baru

Germany based Intex Consulting GmbH has entered into a strategic...

Courtesy: Kraig Laboratories

Textiles | On 28th Mar 2017

Kraig gets certificate for silk production in Vietnam

Kraig Biocraft Laboratories, Inc., a leading biotechnology company...

Courtesy: Creora

Textiles | On 28th Mar 2017

Hyosung holds Creora workshops in China, HK & Taiwan

South Korean specialty fibre producer Hyosung held a series of...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search