The Hindu Business Line : Indian Rayon net unchanged

THOUGH it saw substantial revenue growth in the garments and carbon black division, Indian Rayon's net profit was nearly unchanged at Rs 28.65 crore in the quarter ended December 31, 2004, over Rs 28.56 crore in the year-ago period.

Part of this could be attributed to the 34 per cent increase in raw material prices to Rs 257.25 crore during the quarter.

Net income from operations rose 19.8 per cent to Rs 493.31 crore (Rs 411.73 crore). However, Other Income fell to Rs 1.71 crore (Rs 2.91 crore).

Division-wise, Madura Garments' revenues grew 29 per cent to Rs 129.9 crore. Realisations improved because of increasing sales of higher price point products and topline growth.

The long-term outlook for this segment is positive and the company will focus on building brand equity and market share in a competitive market; proactive management of supply chain and discounting; launch of innerwear in several brands; and, delivering international standard retail experience at the new stores being opened.

In the same quarter the rayon division's revenues rose 13 per cent to Rs 96.32 crore. Viscose filament yarn realisation stabilised at second quarter levels at Rs 151 per kg but is lower on a year-on-year basis.

However, prices have been firming up since January. Sales volume grew 18 per cent to 4,667 tonnes.

The IT Services business notched revenues of Rs 20.39 crore over the corresponding previous period.

The BPO business revenue grew significantly to Rs 26.8 crore from Rs 18.69 crore.

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