The Hindu : Indian Rayon profit up

Online edition of India's National Newspaper
Wednesday, Oct 22, 2003

Business

Business

Indian Rayon profit up

By Our Special Correspondent

MUMBAI OCT. 21. Indian Rayon and Industries, a major Aditya Birla group company, reported a net profit of Rs. 53.59 crores in the second quarter ended September 30, 2003 against Rs. 32.38 crores in the corresponding period last fiscal. However, the net profit includes, Rs. 19.95 crores gained from divestment of Indian Rayon's stake in Indo Gulf Fertilisers, another group company. The turnover was up 14.2 per cent at Rs. 426.34 crores against Rs. 373.29 crores.

"Higher volumes across the businesses have been the growth drivers,'' said Adesh Gupta, President & CFO, Indian Rayon, while addressing a press conference here today.

According to Mr. Gupta, the profit, before tax, has risen by 20.4 per cent to Rs. 48.05 crores from Rs. 39.90 crores on the back of better operating efficiencies. "The VFY business continues to be the major contributor to the company's earnings, supported by the carbon black and garments businesses,'' he said and added "During the quarter the company has completed the acquisition of TransWorks, a BPO business, consolidating its position in knowledge based business". The insulator division recorded a revenue of Rs. 16 crores. "The expansion work in Halol is in line with the schedule. A capital expenditure of Rs. 56.70 crores, to be financed from internal accruals, is planned. This would be completed by the middle of next year". Elaborating on the outlook of several divisions of the company, Mr. Gupta said, "VFY will benefit from improved quality and larger production of value added products, consequent to the expansion.

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