Mawana Sugars Q2 net loss at Rs 7.71 cr

Mawana Sugars today posted a standalone net loss of Rs 7.71 crore for the September quarter on higher expenses and finance cost.
The company had clocked a net profit of Rs 45.09 crore in the same period last year, it said in a BSE filing.
Total income rose to Rs 187.18 crore in the July-September period of this year from Rs 160.47 crore in the year-ago period.
However, expenses increased to Rs 194.69 crore from Rs 103.05 crore in the said period, the filing said.
"The company over the last few years has been incurring cash losses due to which its net worth has been eroded and its current liabilities are in excess of its current assets," the company said.

The Indian sugar industry, particularly in Uttar Pradesh, has faced difficulties on account of rise in sugarcane prices and corresponding lower than expected recovery of sugar from cane, lower sugar prices and consequential under recovery of cost of production, it said.

"These factors have adversely affected the company's operations and financial performance. Higher finance costs have also added to the cash losses," Mawana Sugars said.
It may be noted that the company has registered itself with Board of Industrial and Financial Reconstruction (BIFR) as sick industry firm in 2013. The process of revival/ rehabilitation of the company is under way.

"The company is confident that BIFR will approve a rehabilitation scheme which would entail part sale of its surplus/non-core assets to discharge some of its financial obligations and improve cash flows, reschedulement of outstanding debt and other requisite financial restructuring in consultation with various stakeholders to improve its financial position," it said.
During the current season, the industry has witnessed a steady increase in sugar prices and improved cane recoveries. This has helped the company generate profits in six months period. "The industry outlook is also positive in the short and long term with sugar prices expected to be bold," it added.