Indo Rama Synthetics (India) Limited (IRSL) is a leading polyester maker, declares its annual results for the financial year ended March 31, 2006. IRSL clocked total income of Rs.1933.67 crores as against previous year's total income of Rs.1904.42 crores. EBIDTA for the year is at Rs.191.19 crores as against Rs.239.12 crores last year. The company recorded its PAT at Rs 51.83 crores as compared to Rs. 70.21 crores last year.
Total income for the quarter was marginally lower by 5.2 percent at Rs.528.03 crores from the previous year's total income of Rs.556.93 crores. The EBIDTA for the quarter stood at Rs.36.62 crores as compared to Rs.42.29 crores in the same quarter last year.
The polyester 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 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 '06 – '07 has significantly reduced inter-fibre anomalies, allowing polyester to improve its competitiveness, at a time when cotton prices are expected to rule firm.
marketing@alchempro.com
