Indian Rayon Q1 Net Profit Rises 43%

Mumbai, July 29: | Updated: Jul 30 2003, 05:30am hrs
The Aditya Birla group company Indian Rayon and Industries Ltd has posted a 43 per cent rise in net profit at Rs 21.56 crore in the first quarter ended June 30, 2003 compared to Rs 15.08 crore in the same period last year.

Net sales for the reporting quarter, however, declined by seven per cent at Rs 339 crore as compared to Rs 364.5 crore for the corresponding period the previous year. The company has attributed this to the overall impact of the weavers and transporters strikes.

Sales from the insulator business stood at Rs 13.46 crore as compared to Rs 44.56 crore in the comparable previous quarter. Consequent to the de-merger of its insulator business, Indian Rayon caters exclusively to the domestic sector. The company operated the rayon division at 106.5 per cent capacity during the quarter. Due to the transporters strike, sales volume at 3,260 tonne and revenue at Rs 68.62 crore (Rs 81.01 crore) were lower.

The Madura Garments divisions revenue for the quarter reported a 14.4 per cent rise to Rs 89.19 crore as against Rs 77.98 crore for the corresponding quarter of the previous year. Sales volumes for the quarter have also reported a 13.6 per cent rise.

The company has said that four major factors turnaround of the Peter England brand, market response to revival initiatives, resurgence of power brands and judicious control on advertisement spends have contributed to the divisions performance.

The revenue of the carbon black division, however, reported a decline at Rs 74.72 crore as compared to Rs 75.95 crore for the same period the previous year.

The textiles divisions revenue has gone up by 8.2 per cent to Rs 86.71 crore. Exports have risen by 6 per cent to Rs 53.4 crore.

Difficult market conditions, coupled with the transporters strike led to lower sales at 3,734 million tonne as against 3,811 million tonne in the corresponding previous quarter. The board has co-opted Harsh Vardhan Lodha as a director of the company with effect from August 2, 2003.