The Hindu Business Line : Indian Rayon Q3 net down 28.7 pc

INDIAN Rayon's net profit for the third quarter ended December 31, 2003, declined by 28.7 per cent to Rs 28.56 crore compared to Rs 40.08 crore in the corresponding previous period.

The company attributed the net profit decline to a non-recurring income of Rs 19.48 crore in the year-ago quarter. (This included a positive impact of income-tax refund of Rs 11.47 crore and interest thereon of Rs 8.01 crore, aggregating to Rs 19.48 crore at the net level).

Besides, the company has made an additional depreciation of Rs 1.03 crore on trademarks/brands and Rs 86 lakh for fast depreciating items, leading to a lower net profit.

However, net sales grew 11 per cent to Rs 411.23 crore over Rs 370.45 crore previously.

Indian Rayon's rayon division saw revenue dip by 6.4 per cent to Rs 85.42 crore from Rs 91.31 crore previously. Though sales volumes were maintained and capacity utilisation remained high at 107.6 per cent, realisations were impaired due to industry-wide high stocks levels, lower exports of viscose filament yarn-based apparel and the import of low price yarns from China.

Madura Garments revenues rose to Rs 100.30 crore over Rs 91.66 crore, up 9.4 per cent. According to the company, the long-term outlook is encouraging with positive consumer sentiment and growth in the economy. The business will continue to focus on enhancing its brand equity and providing differentiated merchandise.

The Carbon Black Division's revenues were up 8 per cent at Rs 87.59 crore (Rs 81.07 crore) in the quarter ended December 31, 2003.Sales grew by 9 per cent at 29,846 tonnes on the back of higher exports and growth in the auto and tyre sectors.