Indian Rayon net up 33%

Our Corporate Bureau

Mumbai, Oct 30: Aditya Birla Group company, Indian Rayon has posted a 33 per cent increase in the net profit for the quarter ended September 30, 2001 at Rs 15.12 crore as against Rs 11.38 crore for the corresponding period last year.

Turnover for the period saw a marginal fall at Rs 363.12 crore as compared to Rs 363.43 crore for the same period last year. Turnover in the garments, viscose filament yarn (VFY) and carbon black saw an increase, while the insulators and textiles witnessed a decline.

Indian Rayon Chief Financial Officer Adesh Gupta said that restructuring of high cost debentures has helped the company reduce cost. He said that the coupon rate for the private placed debentures has reduced from 16 to 17 per cent to 11 per cent.

The Madura Garments division reported a 11 per cent increase in the gross sales for the quarter at Rs 102.84 crore as compared to the same period last year. Branded exports doubled to Rs 8 crore and contract exports went up by 59 per cent to Rs 11 crore. Operating margin rose from 18 per cent to 20 per cent aided by the tightening of costs and an efficient supply chain management. Mr Gupta said that the company would focus on its key areas that will drive both long-term growth and increase its share in the short-term like innovation and design, brand development, distribution expansion and supply chain management.

In the VFY sector, the production during the quarter increased marginally from 3,941 metric tonnes to 3,955 metric tonnes. Mr Gupta added that aggressive marketing has enabled the division to achieve a 185 per cent increase in export turnover at Rs 12.3 crore as compared to Rs 4.3 crore for the corresponding period last year.
The carbon black division registered a 14 per cent increase in the turnover at Rs 72.5 crore, as compared to Rs 63.6 crore in the corresponding period last year.

The margin in the division during the quarter increased from 19 per cent to 21 per cent.

Hi-Tech Carbon president Anil Kumar said that the division was diversifying into inks, paints and plastic. He said that the division expects a Rs 3 crore revenue from the 1,000 tonne domestic market.