The Hindu Business Line : Ponni Sugars profit doubles

CHENNAI: Ponni Sugars (Erode) Ltd has more than doubled its profit after tax (PAT) for the third quarter ended December 31, 2004 with a net profit of Rs 1.87 crore on an income of Rs 25.18 crore. During the corresponding period in the previous year, the company reported a net profit of Rs 69 lakh on an income of Rs 21.32 crore.

According to a press release from the company, sugarcane planting has improved in its command area and the outlook is optimistic. It hopes to conclude the current year on a positive note and sustain it in the coming year.

The company, which is bringing down its interest outgo, is opting for low-cost debts and foreclosing high-cost loans. This has contributed Rs 67 lakh (Rs 18 lakh) as an exceptional item of gain in its PAT. Term loan instalments are being pre-paid and working capital borrowings are being pruned to yield interest savings. For the nine months ended December 31, 2004, Ponni Sugars has reported a PAT of Rs 3.03 crore (Rs 1.39 crore) on net sales of Rs 65.32 crore (Rs 57.07 crore).

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