The Hindu Business Line : Indian Rayon full-year net up 43 pc at Rs 39.5 cr

IMPROVED performance by garments and textiles has helped Indian Rayon post a 43-per cent increase in net profit at Rs 39.53 crore over Rs 27.57 crore the previous year.

Net income from operations was Rs 486.95 crore.

For the year ended March 31, the company's net income from operations was Rs 1,860.62 crore (Rs 1,577.38 crore).

The company recommended a dividend of 40 per cent for the current year and the outgo will be Rs 27.31 crore.

Division-wise, revenues of the garment unit grew almost 21 per cent to Rs 472.40 crore (Rs 391.68 crore).

Two power brands have crossed the Rs 100-crore mark in revenues.

The company attributed the performance to improved sales of higher price point products, topline growth and a richer product mix.

According to Mr Vikram Rao, Director, Indian Rayon and Industries, the unit did well due to its brand building efforts, development of innovative merchandise and retail expansion.

The rayon division revenues rose to Rs 352 crore (Rs 335.17 crore). VFY (viscose filament yarn) realisations were affected with high industry stock and increased imports from China. Despite this, sales volumes rose 4.8 per cent to 16,445 tonnes on the back of stabilisation of the 1,000-tonnes continuous spinning yarn capacity and the 105.9 per cent utilisation of the expanded capacity.

The chlor-alkali segment has also been buoyant, and the company has tried to improve quality and reduce cost to ride the difficult market conditions. Implementation of revised work norms will result in 35 per cent productivity in the labour force.

The company is also raising its caustic soda capacity by 85 tonnes per day through de-bottlenecking and setting up a 20-MW captive power plant.

The carbon black division revenues rose 37.3 per cent to Rs 467.25 crore (Rs 340.3 crore). Sales were benefited by capacity expansion last year and the 10,000 tonnes per annum added through de-bottlenecking.

It has initiated work on 50,000 tonnes on brownfield expansion in Chennai at a capex of Rs 105 crore.

The textiles division annual revenues grew 15 per cent to Rs 456.12 per cent. Exports constituted 46 per cent of the division's revenues. Capex has been planned for the expansion and modernisation of the flax yarn and linen fabric facilities.

The BPO business revenues grew to Rs 108.23 crore (Rs 69.43 crore). The seat capacity increased to 1,656 and headcount to 3,235.

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