Indo Rama declares 10 pc final dividend for FY 07

Mumbai, May 16 (UNI) The Directors of the Indo Rama Synthetics (India) Ltd, at their meeting today, declared an annual dividend of 10 per cent in term of Re 1 per equity share for the financial year ended March 31 2007.

The Board of Directors of the Company also announced the merger of Indo Rama Petrochemicals Ltd. (IRPL) with Indo Rama Synthetics (I) Ltd. IRPL recently set up a 30 MW Power Plant at Butibori in Nagpur.

IRSL net sales stood at Rs 613.36 crore for the fourth quarter ended March 31 2007 were higher by 18.7 per cent as compared to Rs 516.59 crore in the corresponding period last year.

Profit after tax was up by 91 per cent at Rs 6.69 crore from Rs 3.5 crore achieved last year.

Commenting on the results, IRSL Chairman and Managing Director OP Lohia said, ''Our performance during the quarter under review has been encouraging. We have completed the doubling of our capacities from 3,00,000 tons to 6,00,000 tons per annum and succeeded in placing a significant portion of the enhanced production in the market. This is a reflection of both of our marketing strength as well as the improving polyester demand. Raw material prices too are becoming stable with increased availability. I look forward to gradually improved performance going forward.'' The company's profitability during the year was however adversely affected by high volatility in the crude oil prices, scarcity of key raw materials during year and high costs of power during major part of the year, higher rates of interest and higher depreciation charge arising from the commissioning of the new plant, he added.

UNI