The Hindu Business Line : Bajaj Hindusthan Q2 net trebles

Bajaj Hindusthan Ltd (BHL) today reported a 200.75 per cent rise in profit after tax for the quarter ended March 31, 2006, to Rs 64.51 crore from the previous corresponding Rs 21.45 crore. Net sales/income from operations moved up by 294.25 per cent to Rs 403.51 crore (Rs 102.35 crore for the year ago period).

For the first half, the sugar manufacturer had a profit-after-tax of Rs 88.75 crore (Rs 31.64 crore) on net sales/income from operations of Rs 690.20 crore (Rs 223.68 crore).

When contacted a senior company official attributed the steep growth rates to the company's aggressive expansion (organic and inorganic) and the accompanying economies of scale. Also helpful in export were improved global sugar prices.

According to an official statement, BHL is to have sugarcane crushing capacity of 100,000 TCD (tonnes crushed per day) by September 2006 and total sugar production of 2 million tonnes by 2006-07.

Between 2004-05 and 2005-06, the company would have invested Rs 1,150 crore to expand production capacity.

The construction of the company's three new sugar plants in UP is proceeding apace. All three plants would be commissioned by September 2006. Between them, they would add 27,000 TCD of crushing capacity.

The ongoing expansion of BHL's distilleries would increase the company's production of industrial alcohol from 320 kilo litres per day (KLPD) to 800 KLPD. BHL is already the largest producer of industrial alcohol and ethanol in India.