The company's sales turnover rose by 20 per cent in the same period to Rs 409.57 crore and Rs 341.68 crore. The operating profit increased by 69 per cent to Rs 68.39 crore, a company statement here said.

With domestic prices of partially oriented yarn (POY) and polyester filament yarn (PFY) rising by over 18 per cent and 25 per cent, respectively, the operating margins have shown an improvement and increased to 16.70 per cent, the company said.

``The company expects a polyester demand growth of 12 to 15 per cent to sustain over the next few years and with no additional polyester capacities in the pipeline, the margins in this industry are expected to improve further,'' it added.

The company attributed the turnaround to internal efficienciesthrough better systems and processes aimed at making Indo Rama one of the lowest producers of polyster. ``One of the first step taken to turn around was to set up strategic business unit concept for polyster as well as yarn production aimed at improving the market penetration,'' the statement added. The cost cutting was suggested by Arthur Anderson. The company has now asked McKinsey to do yet another recast of the entire management structure.The company is now implementing SAP software to imrpove margins further in the coming period as product prices fall.