The Hindu Business Line : Indo Rama Q1 net up 49 pc

INDO Rama Synthetics Ltd announced a 49 per cent growth in net profit during the first quarter of 2005-06 at Rs 10.03 crore, from Rs 6.71 crore during the same period last fiscal. The turnover was up 15.3 per cent at Rs 572.5 crore. The net turnover of the polyester manufacturer rose 19.8 per cent year-on-year at Rs 499 crore during the quarter ended June 30, 2005.

"With low raw material costs and rising demand our margins improved," Indo Rama Chairman and Managing Director, Mr O.P. Lohia, said. He said inventories were at a historic low of 16,000 tonnes and the company would bring it further down to 6,000 tonnes.

The rising prices of cotton also helped, he said. "The prices of cotton have started rising, so in the coming months the demand for synthetic fibres will go up," Mr Lohia said. To meet the anticipated demand, Indo Rama is doubling capacity at its Nagpur facility to 6 lakh tonnes. "The fresh capacity will be operational by the first quarter of 2006-07," he said.

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