Sakthi Sugars was the top gainer among sugar stocks, up 36 per cent, on a better-than-expected performance in the quarter ended June 2008. The stock moved up from Rs 73.84 to Rs 100.25 and its combined turnover on the BSE and NSE shot up almost five-fold from 1.14 million shares to 5.22 million shares.
The company’s net profit in the quarter ended June 2008 rose to Rs 22.49 crore from Rs 4.90 crore in the same quarter of the previous year. The net sales from sugars, industrial alcohol, soya products and power division were up 31.1 per cent to Rs 265.01 crore.
The sugar division made an operating profit of Rs 5.50 crore in the quarter compared to a loss of Rs 12.43 crore during the same period last year. The division, accounting for over 50 per cent of the company’s total revenues, is likely to perform well in the September quarter following the festive season and low sugar output in the current sugar season (October-September).
The power division, which accounts for 14 per cent of the company’s revenues, has started producing results. Its revenues doubled to Rs 44.43 crore and the operating profit rose by 68.5 per cent to Rs 13.67 crore. The sales of the industrial alcohol division rose by 44.6 per cent to Rs 33.70 crore and the operating profit was up 57.7 per cent to Rs 20.05 crore.
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