JBF Industries, a leading player in the polyester value chain saw a 30 per cent increase in sales in Q2 at Rs 1,378 core as compared to the same period last year with Rs 1,063 crores. Operating profits increased 46 per cent from Rs 88 crores to Rs 129 crores on a Y-o-Y basis. In the same period, operating profit margin has improved 200 basis points from 8.32 per cent to 10.3 per cent, despite rise in imported raw material prices.
Net profit has substantially reduced to Rs 5.49 crores (Q2 FY14) as against Rs 27.95 crores (Q2 FY13) on account of rise in interest cost and foreign exchange and derivative losses. On Y-o-Y basis, the gross interest cost (including on forex transactions) has increased from Rs 40 crores to Rs 56 crores while foreign exchange and derivative losses amount has also increased significantly from Rs 17.78 crores to Rs 64.35 crores following volatility in currency market.
Subsequently, the net profit margin has reduced from 2.63 per cent to 0.44 per cent during second quarter of FY 14.
Set up in 1982, JBF Industries a leading player of polyester value chain products in domestic and exports market. It derives the major chunk of revenue from PET chips (60 per cent) and polyester yarns (30 per cent) and rest from BOPET films. The company has three manufacturing facilities in India and one in UAE. It is in process of setting up PTA plant at Mangalore, PET plant in Belgium and BOPET plant in Bahrain.
