Highlights of the call are:

• The company has reported 76% jump in the Net Profit at Rs 5.01 crore over 55% increase in the Net Sales at Rs 81.60 crore in the quarter ended December 2010. The operating margins improved by 60 bps to 12.3% in the quarter under review. Major proportion (85%) of the revenues comes from yarn segment.
• The production of Dyed yarn stood at 680 MT while that of Polyester fiber was 10700 Mt in quarter under review against 370 MT of dyed yarn and 7300 Mt of fiber in the corresponding previous quarter. The capacity utilization stands at 72% for 9MFY11.
• Although the yarn and fiber prices have increased in the market, the company has booked the orders at lower prices and so will have to deliver one more month of orders at lower prices only. Thus the differential of Virgin PSF and recycled PSF realizations has increased to 25% against 15% earlier. The average quarterly prices of yarn stands at Rs 152 per Kg and that of fiber stands at Rs 70 per Kg.
• The company's plant at Kanpur was levied excise duty of 10.3% w.e.f 29 July 2010. Although the company comes under the waste recycling company, the excise board has asked for it to pay excise duty from the Kanpur Plant. The company has filed petition against the excise board. However, it has provided Rs 1 crore of duty in the quarter ended December 2010 and Rs 1.25 crore in the quarter ended September 2010. The other plant at Rudrapur continued to enjoy concessional CST, Excise duty holiday and full IT exemption for the first 5 years and 30% for subsequent 5 years,
• The company has laid capex plan of Rs 124 crore; to add 12000 MT of PET recycling capacity with Rs 62 crore of capex and yarn spinning plant (spun yarn) for forward integration with capex of Rs 62 crore. The capex will be funded by mix of equity, debt and internal accruals. Nearly 50-55% of capex is debt and remaining will be in form of equity and internal accruals.
• The current capacity of the company is 57600 Mt of Fiber and 2400 MT of yarn at end of December 2010.
• IFCI venture Capital funds under its Green India Venture fund has subscribed 15 lakh optionally convertible debentures of Rs 90 each of the company on preferential basis, convertible into equal no of equity shares of Rs 10 each. If converted, the stake of IFCI on fully diluted capital stands at 8%. The money would be flowing in by end of March 2011.
• The debt at end of December 2010 stood at Rs 67 crore, of which Rs 25 crore is in foreign currency. Average cost of debt is 10% while cost of foreign currency debt stands at 5-6%. The company has term loan of Rs 32 crore to be paid back in next 3 years. The cash and equivalents stands at Rs 4 crore.
• Expects topline growth of 30% in FY12.