Indian Rayon’s commodity businesses struggle - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Indian Rayon’s commodity businesses struggle

Apr 20, 2000

Indian Rayon registered an 18.8% decline in turnover. This was primarily due to the fact that the cement division was hived of from the company (after five months of operations in the current year) and amalgamated with Grasim. While the company has declared a loss, this can be explained by the fact the that the unsold assets of the sea water magnesia division’s have been fully provided for. The company completed the takeover of the Madura Garments with effect from January 1st, 2000. This division contributed Rs 570 m in the quarter ended March 2000 and the company expects this business to contribute substantially to the turnover and the profits in the future.

(Rs m) FY1999 FY2000 Change
Sales 14,666 11,870 -19.1%
Other Income 944 521 -44.8%
Expenditure 12,383 10,338 -16.5%
Operating Profit (EBDIT) 2,283 1,532 -32.9%
Operating Profit Margin (%) 16% 13%  
Interest 1,166 742 -36.4%
Depreciation 907 725 -20.1%
Profit before Tax 1,154 586 -49.2%
Other Adjustments - (2,998) -
Tax 94 0 -
Profit after Tax/(Loss) 1,060 (2,412) -327.5%
Net profit margin (%) 7.2% -20.3%  


The company’s other divisions have however been struggling. While viscose filament yarn has seen volumes stagnate (and realisations decline) due to a subdued demand and competition from polyester filament yarn, the insulator division too has seen a decline in per tonne realisations. The carbon black division has not been pass on the 20% increase in feedstock prices (due to firm global prices).

Equitymaster requests your view! Post a comment on "Indian Rayon’s commodity businesses struggle". Click here!

  

More Views on News

Raymond Shares Gain 5% on this Unexpected Move (Views On News)

Sep 28, 2021

Raymond to rejig business to create value for shareholders.

7 Indian Companies that Swear by Buffett's No-Split Rule (Views On News)

Sep 28, 2021

Just like Warren Buffett's Berkshire Hathaway, these Indian companies have not split their shares.

Top Performing Penny Stocks of 2021 (Views On News)

Aug 28, 2021

Several penny stocks have delivered multi-fold returns in a short span of time. Here are a few of them.

Grasim Results Review: Net Profit Beats Estimates as Revenues Rise 182% (Views On News)

Aug 16, 2021

Higher VSF exports help Grasim amid weak domestic demand.

Rupa & Company Stock in Focus on Strong Quarterly Results (Views On News)

Jun 1, 2021

Here's a rundown on the latest quarterly results of Rupa and Company.

More Views on News

Most Popular

India's Best Semiconductor Stocks Views On News (Views On News)

Jan 7, 2022

Modern wars are fought with semiconductors. India's best semiconductor stocks have big tailwinds from defence and manufacturing.

10 Indian Companies with the Fastest Growth in Dividend Payouts... (Views On News)

Jan 10, 2022

These companies have been consistently paying higher dividends for several years.

Tata Steel vs SAIL: Which Stock is Better? (Views On News)

Jan 13, 2022

With government initiatives set to boost the steel sector, find out who has a better chance of coming out on top.

Looking for Consistent Compounding Stocks? Here's a Watchlist for You (Views On News)

Jan 6, 2022

These companies have generated mind boggling returns for investors over the years.

My Best Sectors for 2022 (Fast Profits Daily)

Jan 4, 2022

My top 2 sectors for 2022 might surprise you.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

ADITYA BIRLA NUVO SHARE PRICE


Jul 4, 2017 (Close)

TRACK ADITYA BIRLA NUVO

  • Track your investment in ADITYA BIRLA NUVO with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON ADITYA BIRLA NUVO

ADITYA BIRLA NUVO 8-QTR ANALYSIS

COMPARE ADITYA BIRLA NUVO WITH

MARKET STATS