Jan 18, 2002|
Indo Rama: Moving ahead
Indo Rama Synthetics (India) Ltd. has managed to bring some life back into its topline. After slipping in the second quarter (net sales declined by 14%) the company has managed to post respectable growth. However, damage from 2QFY02 is reflecting on the nine month performance.
|Operating Profit (EBDIT)
|Operating Profit Margin (%)
|Profit before Tax
|Profit after Tax/(Loss)
|Net profit margin (%)
|No. of Shares (eoy)
|Diluted earnings per share*
Having said that, the growth in topline is impressive considering the prevailing weakness in the industry. Textile export growth has been significantly hit with the slump in global trade and domestic polyester demand is also sluggish, which has led to reduced realisations. Consequently, the rise is likely to have resulted from focus on specialty grades and/or higher volumes.
Despite the difficult demand scenario, operating margins of the company have improved, which could be the upshot of lower feedstock prices. Oil prices have declined 30% from the highs touched post September 11. This is likely to have reflected on naphtha prices. Raw material expenses are down 19.6% and 5.2% YoY for three and nine months ended December '01 respectively.
The company continues to cut down on interest costs, which have been declining, YoY, over the past three quarters of the fiscal. Efforts on improving working capital efficiency and capital restructuring exercises seem to have yielded results. The company has implemented a resource planning system, J.D. Edwards, which could tighten working capital cycle.
Higher operating profits and lower interest expense has enabled the company to post strong growth in pre-tax profits. Tax liability in the current fiscal is due to implementation of accounting standard - 22, Accounting for Taxes on Income. The company has incurred a cumulative deferred tax asset for the period upto march 2001. Extraordinary items for 9mFY02 pertain primarily to doubtful debts. At Rs 8.1 the scrip trades on a dismal valuation of 2.5x 9mFY02 annualised earnings.
More Views on News
Sorry! There are no related views on news for this company/sector.
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407