Sugar manufacturer EID Parry on Wednesday reported consolidated net profit at Rs 380.36 crore for the quarter ending September 30, 2019.
The city-based Murugappa Group firm had registered net profit at Rs 250.22 crore the same quarter last fiscal.
For the six month period ending September 30, 2019 consolidated profit after tax went upto Rs 377.29 crore from Rs 90.68 crore.
Consolidated total income for the July-September quarter grew to Rs 5,697.54 crore from Rs 5,847.46 crore.
For the six month period ending September 30, 2019, consolidated total income was at Rs 8,850.90 crore as against Rs 9,217.99 crore.
In a statement, the company said the sugar division reported a loss before interest and tax of Rs 82 crore as compared to Rs 110 crore registered in the year ago period.
The farm inputs division reported a profit before interest and tax of Rs 712 crore compared to Rs 672 crore.
The neutraceuticals division registered a loss before interest and tax of Rs 6 crore, largely on account of expenses connected with new product launches at US Nutraceuticals Incs, a wholly owned subsidiary.
Commenting on the financial performance, EID Parry MD S Suresh said, "the performance of the company got affected in Q2 due to muted sugar prices on account of higher inventory and release order mechanism."
"The sugar prices improved compared to the previous quarter due to floods in Karnataka and Maharashtra which affected the movement of sugar stocks from these states to other states, thereby benefiting the company," he said.
He said the sugarcane crushing volume in Tamil Nadu was better during the quarter under review as compared to previous year numbers.
He said the company also received approval from the Board of Directors to establish a 60 KLPD greenfield distillery plant at its Bagalkot unit in Karnataka.
Suresh said the government of India has taken various supportive measures to provide stability to sugar prices.
The Tamil Nadu government has taken positive steps to increase domestic sales of alcohol within the state by regulating import from other States. This would augur well for the company in the coming quarters, he said.
EID Parry has eight sugar factories having a capacity to crush 43,800 tonne of cane per day, generate 160MW and four distilleries having a capacity of 234 KLPD.
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