Shree Renuka Sugars sees a turnaround in March quarter

Total income from the company has declined by 10% to Rs 1,684 crore for the fourth quarter compared annually

India’s largest sugar refiner Shree Renuka Sugars (SRS) has reported a turnaround in its quarterly financial performance with a standalone net profit at Rs 4.3 crore for the quarter ended March 31, 2015 as compared to a net loss of Rs 88.3 crore for the corresponding quarter last year.

The total income from the company has declined by 10 per cent to Rs 1,684 crore for the fourth quarter of the financial year 2014-15 as against Rs 1,866.6 crore for the same quarter last year.

Narendra Murkumbi, vice-chairman and managing director of the company, attributed the turnaround in company’s performance to extended emphasis on branded sugar “Madhur” which fetched Rs 2-3 a kg higher than the bulk sugar price of Rs 24-24.5 a kg at the factory gate.

With improved refining margins due to low raw sugar prices and high ethanol realisation at Rs 40.5 a litre now (as against Rs 34-34.5 a litre in the same quarter last year), SRS hopes that its branded sugar and ethanol segments to do better in future as well.

Improved business was also indicated in its sugar inventory which stood at Rs 532.5 crore for the quarter ended March 31, 2015 as compared to Rs 215.4 crore in the same quarter previous year.

For the full financial year 2004-15, however, net loss of the company stood at 295.1 crore as against net loss of Rs 166.1 crore for last year. Also, a decline was reported in total income at Rs 5,748.1 crore in the financial year 2014-15 as against Rs 6,577.1 crore in the previous year.

Core businesses of the company i.e. sugar, co-generation and ethanol reported significant growth in profit during the quarter ended March 31, 2015. While sugar generated a profit of Rs 40.4 crore (Rs 18 crore) that from co-generation and ethanol jumped to Rs 61 crore (Rs 48.5 crore) and Rs 46.4 crore (17.5 crore), respectively.

Murkumbi said the government’s push for ethanol blending has started yielding resulted in March quarter with improved lifting from oil marketing companies (OMCs).