Indo Rama rallies 14% after subsidiary starts production of bottle grade PET resin

Shares of Indo Rama Synthetics India Ltd jumped 14 percent in early trade today as its subsidiary begins commercial production of bottle grade PET resins. At 10am, the Indo Rama Synthetics India Ltd stock was trading 13.60 percent higher at Rs 48.70 on NSE.

lndorama Yarns Private Limited, a wholly owned subsidiary company of Indo Rama Synthetics (India) Limited, began commercial production of bottle grade PET resins from its newly built solid-state polymerisation (SSP) plant at Butibori in Nagpur, Maharashtra, on June 2, as per a filing with the BSE.

On a consolidated quarterly basis, Indo Rama Synthetics (India) reported net sales at Rs 880.01 crore in the March quarter of FY2023, down 29.7 percent from Rs 1,251.71 crore a year back. Its quarterly net profit fell 98.49 percent to Rs 1.62 crore from Rs 107.13 crore, while EBITDA stood at Rs 27.84 crore, down 78.47 percent from Rs. 129.33 crore. Indo Rama Synth EPS has decreased to Rs 0.06 in March 2023 from Rs 4.10 in March 2022.

On a standalone quarterly basis, Indo Rama Synthetics (India) reported net sales at Rs 843.15 crore for the quarter under review, down 29.72 percent from Rs 1,199.71 crore last year. Its quarterly net profit slumped 97.97 percent to Rs. 2.17 crore from Rs. 107.10 crore in the last one year, while EBITDA fell 78.69 percent Rs 27.55 crore from Rs. 129.28 crore.

Stock Performance

Indo Rama Synthetics India Ltd stock has given a return of 103.46 percent over the last five years. Thus outperforming the benchmark Nifty50 index which has given a return of 72.76 percent over the same duration.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.