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Indo Rama Synthetics (India) has reported a profit after tax (PAT) of Rs 51.44 crore for the first quarter ended June 30, 2011 against a net loss of Rs 12.53 crore during the first quarter of the previous fiscal.
According to a company statement, gross sales during the quarter under review stood at Rs 667.28 crore compared with Rs 622.19 crore in the corresponding quarter of the previous fiscal.
Commenting on the results, the company CMD, Mr O.P. Lohia, said: “Delivering on important cost-reduction projects has helped the company arrest the decline in margins in a soft demand phase of the business cycle.”
“We remain buoyant on the prospects of the polyester business, with newer and increased applications of the fibre taking place globally,” he added.
To improve cost-efficiency, the firm had planned to replace the existing heat treatment media based on furnace oil with coal technology at a project cost of Rs 73 crore.
“The project is on track and is to be commissioned in the later part of this month,” the company said.
Further, the company is in the process of expanding the production capacity of its value-added product, Draw Texturised Yarn (DTY), from the existing 64,800 tonnes per annum to 84,000 tonnes per annum through the installation of eight new machines, it added.
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