Triveni Engineering Q2 net at Rs 23 cr

Sugar manufacturer Triveni Engineering and Industries today announced a net profit of Rs 23.5 crore for the second quarter ended March 31.

The company's financial results are not comparable with the same period last year due to demerger of the steam turbine business to Triveni Turbine, Triveni Engineering and Industries (TEIL) said in a statement.

TEIL clocked net sales of Rs 455 crore during the second quarter ended March 31, it said.

During the October-March period of the 2010-11 financial year, the company made a net profit of Rs 25.2 crore and net sales of Rs 912 crore, it added.

"The performance of the business during the quarter and half year under review has been a mixed bag. Sugar results are marginally positive due to subdued sugar prices. However, significant contribution by allied business have spruced up the overall sugar business results," TEIL Chairman and Managing Director Dhruv M Sawhney said.

In the current season, the cane crushing has been lower than the forecasts, due to much lower than anticipated yields in Western Uttar Pradesh, he said.

"We believe that fundamentaly, the sugar prices should improve going forward in view of production of the country to be much lower than initial forecasts," he noted.

The country's sugar production is estimated to be 24.5 million tonne in the 2010-11 season (October-September), as against 19 million tonne in the last season.

TEIL also mentioned that the company has obtained recently the statutory approvals for demerger of its stream turbine business to Triveni Turbine and is taking required steps to get the equity shares of the resulting company listed and traded at the earliest.