You are here: Home » Companies » News
Business Standard

EID Parry Q2 net up over 20x to Rs 131 cr on better margins, cost control

Revenue from operations for the quarter grew 20% to Rs 529 crore from Rs 440 crore a year ago

Topics
EID Parry | Q2 results

T E Narasimhan  |  Chennai 

Murugappa Group's office
EID Parry is part of Murugappa Group

(India) Limited, part of Murugappa Group, posted standalone profit after tax of RS 131 crore for the quarter ended September 30, as against Rs six crore in the corresponding quarter of previous year. Revenue from operations for the quarter ended September 30 grew 20 per cent to Rs 529 crore from Rs 440 crore a year ago.

Earnings before depreciation, interest and taxes (EBITDA) and before exceptional items for the quarter ended was Rs 226 Crore as against Rs 51 crore in the corresponding quarter of previous year. During the quarter, the Company received from its subsidiary, Coromandel International Limited, a final dividend of Rs 206 Crore for the financial year 2019-20 as against Rs 62 Crore for the corresponding quarter of the previous year.

S Suresh, Managing Director said that the performance of the Company was better in Q2FY21 than in the corresponding quarter of previous year, due to better realisation and the cost reduction measures which continued from the Q1 2020-21. The Company was successful in meeting the export obligation for sugar season 2019-20 under MAEQ scheme. Sugar prices remained in the same levels of that of Q1 2020-21 and release order mechanism continued to be in place.

He added, the government had increased the FRP by Rs 100 per tonne for the sugar season 2020-21 without any increase in MSP of sugar. Though, the Government of India has announced increase in Ethanol procurement rates varying between Rs 1.90 and Rs.3.34 per litre depending on the grades of ethanol for the period December 2020 to November 2021, Industry is expecting an increase in MSP for Sugar for covering the increase in cane and other costs for healthy survival.

Availability of cane is expected to be better in Karnataka for sugar season 2020-21 as compared to previous sugar season while in Tamilnadu and Andhra it is expected to be in same lines as that of last year, he said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, November 09 2020. 19:14 IST
RECOMMENDED FOR YOU
.