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Indo Rama Synthetics (India) Ltd.

Indo Rama Synthetics (India) Ltd. Quarter 3 Results : 2006-07 Investor Release 19 January, 2007. Agenda. Crude & Raw Material Outlook Emerging Polyester Scenario Update on Indo Rama Synthetics Expansion Project Indo Rama Synthetics - Financial Performance Q3 07.

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Indo Rama Synthetics (India) Ltd.

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

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

  3. Crude & Raw Material Outlook

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

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

  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. Emerging Polyester Scenario

  9. Likely Duty Corrections in the Union Budget would be a Demand Booster for Polyester Industry

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

  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. Update on Indo Rama Synthetics Expansion Project

  13. Status of Polyester expansion project • Commercial Production of POY plant started in November 2006 • PSF plant likely to be commissioned in February 2007. • Rs. 747.10 Crore has been incurred on the polyester expansion project till December 2006. • 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 2006. • Unit 2 is expected to be commissioned by mid of March 2007. • This will ensure an uninterrupted power supply to be available to IRSL at competitive rate

  14. Indo Rama Synthetics – Financial Performance Q3 07

  15. Financial Highlights – IRSL Rs. Crores

  16. Financial Highlights – IRSL Rs. Crores

  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 55.87 cr in Q3 of 2005-06 • 37% increase in sales volume • 34% increase in domestic sales • 401% surge in exports • 48% increase in production volume

  18. Analysis of Q3 Results • EBIDTA went up by 21% • Cash Profit increased marginally from 32.53 Cr. to 32.70 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. Financial Highlights – IRSL Rs. Crores

  20. Financial Highlights – IRSL Rs. Crores

  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. House Open for Questions

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