Indian Rayon Q4 Net Profit Surges 55% To Rs 28 Crore

Mumbai, April 29 | Updated: Apr 30 2004, 05:30am hrs
Aditya Birla groups Indian Rayon & Industries has reported a 54.9 per cent increase in net profit to Rs 27.6 crore for the fourth quarter ended March 31, 2004. Net sales grew by 18.7 per cent to Rs 397 crore from Rs 334 crore last year, an Aditya Birla group press release said.

During the quarter under review, revenue from garments grew by 34 per cent to Rs 89.3 crore while gross profit in this segment reported Rs 6.9 crore as compared to a loss of Rs 3.6 crore in the corresponding quarter last year.

For the year ended March 31, 2004, the company has posted a 24.6 per cent increase in net profit to Rs 131 crore as against Rs 105 crore last year. Net sales grew by 9.1 per cent to Rs 1,574 crore from Rs 1,442 crore in the previous year.

The net profit for the year is not strictly comparable to that of the previous year because of exceptional items. During the year, the company gained Rs 20 crore on the sale of its shares in Indo Gulf Fertiliser Ltd. In the previous year, the company had benefitted by Rs 38.4 crore on account of the demerger of the insulator division, but incurred a loss of Rs 57.1 crore on account of its disinvestments in MRPL, the release said.

The board has recommended a dividend of 40 per cent as compared to 37.5 per cent paid in the previous year.

The company has planned a capex for projects in VFY, carbon black and textiles amounting to Rs 202 crore during 2005-07. The company has also earmarked Rs 276 crore for modernisation in these very segments.

The company has also planned an investment of Rs 141 crore in its insurance subsidiary and a capex plan of Rs 96.7 crore in its BPO business during the same period.