Indo Rama Synthetics Reports a Net Loss of $41.9 Million for FY19-20

Indo Rama Synthetics (India) Limited, one of India’s major polyester manufacturer, announced its results for the quarter and financial year ended March 31, 2020.

Q4 Results

The company reported a net loss of Rs 49.84 crores (-$6.6 million) for the quarter ended March 31, 2020 as compared to a net loss of Rs 169.33 crores (-$22.4 million) in the prior-year quarter.

The company’s net revenue increased 9.9% to Rs 480.64 crores ($63.6 million) for the quarter ended March 31, 2020, as against Rs 437.43 crores ($57.9 million) in the prior-year quarter.

Full-Year Results

Indo Rama reported a net loss of Rs 316.10 crores ($41.9 million) for the current financial year as against net loss of Rs 271.06 crores ($35.9 million) during the last financial year. The loss is higher due to reversal of non-cash item of deferred tax taken in earlier years.

Net sales for the financial year ended March 31, 2020 increased 25.2% to Rs 2,127.94 crores ($281.8 million) as compared to Rs 1,699.37 crores ($221 million) in the previous year.

On the impact of the pandemic on its financial performace, Indo Rama said in its filing “Since the situations are continuously evolving, the impact assessed may be different from the estimates made as at the date of approval of these financial results and management will continue to monitor any material changes arising due to the impact of this pandemic on financial and operational performance of the Company and take necessary measures to address the situation.”

The company said that “the relief action for the industry from Government of India by abolishing anti-dumping duty on imported PTA, a key raw material (of Polyester) for the Company, in budget 2020-21, will have additional positive impact on the business.”