The company has reported a net loss of Rs 37.95 crore in this quarter, compared to net loss of Rs 7.76 crore in the corresponding quarter last year. 

For the nine months that ended 31 December 2016, net revenue constituted Rs 2099.80 crore, compared to Rs 2065.37 crore in the previous year. The EBIDTA for the period was Rs 8.80 crore, versus Rs 56.56 crore in the previous year. Net loss for the period stood at Rs 69.20 crore, compared to net loss of Rs 51.60 crore during the corresponding period of previous year.

Price increase

“Industry witnessed an increase in oil prices in the last three months and consequent increase in raw material prices i.e. PTA and MEG, but because of the demonetisation impact, the increase in price of raw material could not be passed to customers in same line,” commented O. P. Lohia, Chairman & Managing Director, Indo Rama Synthetics (India).

“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 demonetisation leading to negative financial impact which is now slowly getting back to normal.”

Positive outlook

“There has been dumping of polyester fibre from China and other countries for more than one year, which has been putting pressure on prices and impacted the margin. At present, we are on the verge of witnessing the implementation of the most awaited indirect tax reform in India, the GST, which is expected to be a growth stimulator for the polyester industry. Looking forward, global and domestic demand for polyester fibre is looking upward and so are the prices. This will open new opportunities for MMF producers,” Mr Lohia concluded.

Indo Rama Synthetics (India)

The Indo Rama Group has a strong presence in Indonesia, Thailand, USA, Nepal and Sri Lanka, besides India. It has focussed business activities in the field of textiles, polyesters, and industrial chemicals.

Indo Rama Synthetics (India) is India’s largest dedicated polyester manufacturer with an Integrated manufacturing complex in Butibori, near Nagpur, in Maharashtra, with production capacity of 610,050 tonnes per annum of polyester staple fibre, filament yarn, draw texturized yarn, fully drawn yarn and textile grade chips.

www.indoramaindia.com