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Indo Rama Synthetics (India) Ltd. Quarter 3 Results : 2006-07 Investor Release 19 January, 2007.

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Presentation on theme: "Indo Rama Synthetics (India) Ltd. Quarter 3 Results : 2006-07 Investor Release 19 January, 2007."— Presentation transcript:

1 Indo Rama Synthetics (India) Ltd. Quarter 3 Results : Investor Release 19 January, 2007

2 2 2 Agenda 1.Crude & Raw Material Outlook 2.Emerging Polyester Scenario 3.Update on Indo Rama Synthetics Expansion Project 4.Indo Rama Synthetics - Financial Performance Q3 07

3 3 3 Crude & Raw Material Outlook

4 4 4 Behaviour of PTA & Crude Oil Prices 30% fall in PTA prices since September 06 : showing signs of better margins, augurs well for downstream in the petrochemical cycle Falling crude oil price pushes down Paraxylene prices resulting in softening PTA Prices

5 5 5 Improved PTA availability World Asia Supply Surging ahead of demand – likely softening of prices

6 6 6 ‘000 Tonnes World MEG Inventory & Demand at maximum EO rates Rising Projected Inventory likely to Soften MEG prices

7 7 7 Summary of Raw Material Outlook  Crude Oil : 36% decline from the peak of $78 in August 06  PTA : 30% decline in the price of PTA since September 06 Further softening of PTA prices expected with Supply increasing at faster pace than demand  MEG : prices likely to soften with increasing inventory

8 8 8 Emerging Polyester Scenario

9 9 9 Likely Duty Corrections in the Union Budget would be a Demand Booster for Polyester Industry Current Excise dutyExpected Excise duty after budget Polyester 8% 4% PTA 8%4% MEG 12%4% Cotton 4%

10 10 World Polyester Demand & Supply Globally Polyester Demand is forecast to go up steadily after the bottoming out in 2005/2006

11 11 Polyester tolling margins at historical low All time low Polyester margins is leading to closure of plants in Korea, Taiwan and USA creating big opportunity for Indian Polyester Industry

12 12 Update on Indo Rama Synthetics Expansion Project

13 13  Status of Polyester expansion project  Commercial Production of POY plant started in November 2006  PSF plant likely to be commissioned in February  Rs Crore has been incurred on the polyester expansion project till December  Status of Power Project of Indo Rama Petrochem Ltd.  Consists of two units of 15 MW each  Unit 1 was commissioned in the last week of December  Unit 2 is expected to be commissioned by mid of March  This will ensure an uninterrupted power supply to be available to IRSL at competitive rate

14 14 Indo Rama Synthetics – Financial Performance Q3 07

15 15 Particulars Q Q Domestic Sales Export Sales Gross Turnover Less : Excise Duty on Sales Net Turnover Other Income Total Income (Increase) / Decrease in Stock- in-Trade (25.22) (52.10) Movement in Excise Duty on Stocks Raw - materials Staff Cost Other Expenditure Total Expenditure Financial Highlights – IRSL Rs. Crores

16 16 Financial Highlights – IRSL Rs. Crores Particulars Q Q EBDITA Interest EBDT Depreciation Profit Before Tax (PBT) Provision for Taxation -MAT0 0 -FBT Deferred Tax Profit after Tax (PAT)

17 17 Analysis of Q3 Results  Significant achievement of placing the enhanced capacity by penetrating new markets 35% increase in net turnover 47% increase in net sales after adjusting for the merchant sales of cr in Q3 of % increase in sales volume 34% increase in domestic sales 401% surge in exports 48% increase in production volume

18 18 Analysis of Q3 Results EBIDTA went up by 21% Cash Profit increased marginally from Cr. to Cr. PAT went down by 34% because of following reasons : Increase in Interest cost by 153% due to debt taken for funding the new polyester plant Increase in depreciation by 12% because of commencement of new polyester plant Not passing the full impact of higher raw material prices at their peak to significantly increase the market share

19 19 Financial Highlights – IRSL Rs. Crores Particulars For Nine Months Ended Domestic Sales Export Sales Gross Turnover 1, , Less : Excise Duty on Sales Net Turnover 1, , Other Income Total Income (Increase) / Decrease in Stock- in-Trade (124.72) Movement in Excise Duty on Stocks (23.16) Raw - materials 1, Staff Cost Other Expenditure Total Expenditure 1, ,253.73

20 20 Financial Highlights – IRSL Rs. Crores Particulars For Nine Months Ended EBDITA Interest EBDT Depreciation Profit Before Tax (PBT) Provision for Taxation -MAT FBT 0.6 -Deferred Tax Profit after Tax (PAT)

21 21 Analysis of YTD Results 3% increase in net turnover Exports surged by 211% EBDITA decreased by 20% Interest cost gone up by 24% Depreciation marginally up by 5% PBT declined by 65% PAT fell by 71%

22 22 House Open for Questions


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