Indo Rama Synthetics India Ltd'

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Indo Rama Synthetics (India) Ltd.

• Quarter 3 Results 2006-07
• Investor Release
• 19 January, 2007

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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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Crude Raw Material Outlook
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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
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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

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• Emerging Polyester Scenario

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Likely Duty Corrections in the Union Budget would
be a Demand Booster for Polyester Industry
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World Polyester Demand Supply
Globally Polyester Demand is forecast to go up
steadily after the bottoming out in 2005/2006
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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
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Update on Indo Rama Synthetics Expansion Project
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• 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

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Indo Rama Synthetics Financial Performance Q3 07
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Financial Highlights IRSL
Rs. Crores
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Financial Highlights IRSL
Rs. Crores
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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

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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

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Financial Highlights IRSL
Rs. Crores
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Financial Highlights IRSL
Rs. Crores
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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

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House Open for Questions