Shree Renuka Sugars Dec qtr net dips 75% to Rs 66 cr

Shree Renuka Sugars (SRSL), the country's largest sugar refiner, today said its consolidated net profit fell by 75% to Rs 66.4 crore for the quarter ended December 31, 2010, as higher costs offset a rise in sales.

The company had posted a net profit of Rs 260.9 crore in the corresponding period of 2009, SRSL said in a filing to the Bombay Stock Exchange (BSE).

Net sales rose by over 57% to Rs 2,247 crore from Rs 1,428.7 crore in the same period last fiscal, but total costs rose significantly by 82.32% to Rs 1,946.5 crore from Rs 1,067.6 crore in the review period, it said.

The consolidated results include the company's operation in Brazil. SRSL acquired a majority stake in Brazilian company Group Equipav's sugar business in 2010. It also bought Brazil-based sugar and ethanol production company Vale Do Ivai SA Acucar E Alcool in November, 2009.

Shares of the company closed today at Rs 84.60 on the BSE, down 1.40% from its previous close.