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Polyester manufacturer Indo Rama Synthetics (India) Ltd reported a loss of Rs 61.36 crore in the second quarter of the current fiscal, owing to higher costs of imported inputs and lower sales.
The company had posted a net profit of Rs 103.59 crore in the comparable period last year.
Indo Rama expects performance to improve over the next two quarters on the back of higher demand.
“Our performance for this quarter has been delivered in the face of a continuing difficult macro environment. Demand has decreased significantly resulting in lower offtake. The volatility of Indian currency has also increased the cost of our imported inputs and resulted in forex loss,” said O P Lohia, CMD.
For the July-September 2013 quarter, net sales were at Rs 619.98 crore against Rs 734.5 crore in the year-ago quarter.
EBITDA (earnings before interest, taxes, depreciation and amortisation) declined to Rs 15.55 crore compared with Rs 41.26 crore a year ago.
Production was also hampered due to lack of adequate raw material as supply was disrupted by a stoppage of production at the purified trephthalic acid plant of IndianOil Corp at Panipat.
“We expect demand to grow in the next two quarters both in the domestic and international markets.
“Moreover, we have started tapping new markets like Latin America, which would also translate into more demand,” CEO Anand Kishore told Business Line .
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