Throughout 2022, PT Indo-Rama Synthetic Tbk (INDR) recorded a net profit of US$ 42.537 million or a drop of 49.7% compared to 2021 which was estimated at US$ 84.569 million. As a result, basic earnings per share fell to a level of US$ 0.065 per share, while at the end of 2021 it was at the level of US$ 0.1292. This information was conveyed by the company in an audited financial report in Jakarta, yesterday. The textile issuer posted a net revenue growth of 5.8% to US$ 936.14 million which was supported by an increase in sales to the domestic market by 29.06% to US$ 444.04 million.

However, the export value fell 8.7% to US$ 493.87 million. Meanwhile, the total cost of revenue increased by 13.3% to US$ 855.33 million. One of the triggers, the cost of raw materials used rose 18.3% to US$ 614.2 million. As a result, gross profit shrank 37.9% to US$ 80.811 million.

Meanwhile, total liabilities decreased by 8.3% to US$ 404.64 million. On the other hand, equity increased by 0.4% to US$ 465.15 million. For information, this year the company has budgeted capital spending to increase to US$ 90 million. This fund is prepared for the construction of spun yarn factories in Indonesia and Turkey as well as plans to invest in a subsidiary of PT Cikondang Kancana Prima for gold mining in Indonesia.

Just so you know, the company is carrying out the expansion of spun yarn factories in Indonesia and Turkey. The company targets this expansion to be completed in 2023 to 2024. It was stated that the construction of a spun yarn factory in Indonesia with a capacity of 12,000 tons per year is expected to start operating in the second quarter of 2023. Meanwhile, the construction of a spun yarn factory in Turkey with a capacity of 11,000 tons per year is expected to start operating in the first quarter of 2024.

Currently, INDR exports its products to more than 70 countries in the world. In detail, sales to Asia (except Indonesia) account for 38% of total sales, to Europe 12%, America 11%, and ROW countries 8%. Domestic sales account for 30% of sales.

President Director of INDR, Vishnu Swaroop Baldwa, once said that the global demand for polyester will continue to strengthen, this will immediately have an impact on increasing world polyester production in the years to come. "There are a number of industry dynamics that affect polyester consumption trends, including population growth, urbanization of the middle class, high income levels, infrastructure development, and others," he explained.

The increasing population and demographic changes have caused the demand for polyester and spun products to increase. With the urbanization of the middle class, the demand for polyester has the potential to increase if people in developing countries reach the current average global consumption level. As for the high level of income will encourage demand for household needs and textiles.