MUMBAI, November 5: Indian Rayon & Industries, an AV Birla group company, has posted a modest one per cent growth in net profit to Rs 101 crore during the first six-month period ended September 1997 from Rs 99.84 crore previously. The company has been able to barely maintain its profits at last year's levels despite a 10 per cent rise in sales turover, which increased to Rs 741.09 crore from Rs 674.04 crore during the first half of last year.Indian Rayon's net margin, during the period, came under severe pressure and fell sharply to 13.63 per cent from 14.81 per cent last year. Total expenditure during the first half shot up 15 per cent from Rs 495.88 crore last year to Rs 571.53 crore.

The first half saw a marginal rise in the company's gross profits at Rs 152.84 crore, up from Rs 148.59 crore during the corresponding period last year. A company official admitted that the company's margins have come under tremendous pressure due to the low realisation. Interest cost at Rs 54.15 were lower than the corresponding period last year, when it was Rs 62.15 crore.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.