EID Parry (India) Limited, one of the largest manufacturers of sugar in India and part of Murugappa Group, has reported a standalone Profit of Rs 339 Crore during the quarter ended December 31, 2020 as against a loss of Rs 20 Crore during the same period last year.
Revenue from operations for the quarter ended December 31, 2020 was Rs 439 crore in comparison to the corresponding quarter of previous year of Rs 437 Crore, a year ago.
Consolidated revenue from operations for the quarter ended December 31, 2020 was up 15 per cent at Rs 4,701 crore, from Rs 4,082 crore a year ago. Earning before depreciation, interest and taxes (EBITDA) and before exceptional item for the quarter ended December 31, 2020 was Rs 559 Crore, up 10 per cent over the corresponding quarter of previous year of Rs 509 Crore. Consolidated profit after tax and non-controlling interest was Rs 107 Crore compared to Rs 157 Crore in corresponding quarter of previous year.
S Suresh, Managing Director of the company said that performance of the company during the quarter was impacted due to increase in Fair & Remunerative Price (FRP) without corresponding increase in the Minimum Selling Price (MSP) of Sugar and also due to the reduced sugar selling prices. The selling prices were under severe pressure due to the carryover surplus and the higher sugar production in the country during the quarter. Further, the much-expected export programme also did not come through during the quarter.
Cane crush is expected to be marginally better than the last sugar year in Karnataka, while it is expected to be almost similar to the last year number for Tamil Nadu and Andhra Pradesh regions.
The Company continues to focus on sweating the assets along with cost and cash management. The Board of Directors have approved the closure of Pettavaithalai unit which had not been in operations for the past few years.
The Company proposes to transfer the assets of the units to its other units/dispose of other assets as it deemed appropriate. Consequently, the Company has charged Rs. 83.32 Crores to the profit and loss account (representing Rs. 65.53 Crores of impairment charges and Rs. 17.79 Crores towards dismantling / transportation expenses) for the quarter and nine months ended December 31, 2020. Also, the Company has impaired Goodwill of Rs. 14.52 Crores relating to Ramdurg factory based on evaluation of the recoverability, being a leased plant.
During the quarter the company had further sold 2% stake in its subsidiary, Coromandel International Limited as a part of its debt reduction plan.