New Delhi, Apr 20 (UNI) Indo Rama Synthetics Ltd (IRSL) today reported a decline of over 25 per cent in its net profit at Rs 51.83 crore during the financial year 2005-06 as compared to Rs 70.21 crore last year.
The IRSL clocked a total income of Rs 1933.67 crore during the year as against Rs 1904.42 crore in the previous year. The company also recorded EBIDTA at Rs 191.19 crore as against Rs 239.12 crore during 2005-06.
Total income for the fourth quarter was marginally lower by 5.2 per cent at Rs 528.03 crore from the previous year's total income of Rs 556.93 crore while EBIDTA for the quarter stood at Rs 36.62 crore as compared to Rs 42.29 crore in the same quarter last year.
Commenting on the results at press conference here, Mr O P Lohia, Chairman and Managing Director, IRSL, said that the polyster industry, over the past two years, has had to face both supply side and demand-led pressures. On the one hand, surging crude oil prices and global PTA/MEG shortages led to a very high raw material costs.
On the other hand, high cotton availability in a fiscal regime with a built-in bias against synthetics, had led to constrained markets for polyester.
The results for the year reflect these difficulties and yet bear testimony to the resilience of the company in the face of such enormous challenges.
''The coming year is expected to mark a turn around on all these counts as a massive global ramp up of PTA/MEG capacity will lead to softening of raw material prices. Simultaneously, the Union Budget 2006-07 has significantly reduced inter-fibre anomalies, allowing polyster to improve its competitiveness, at a time when cotton prices are expected to rule firm,'' Mr Lohia said.
Finally, with a resurgent domestic economy driving consumption across all sectors and with buoyant Indian textile exports, the future augurs well for strong, cost efficient large scale polyster producers, he hoped.
UNI BBS SS KN2003