The Hindu Business Line : Bajaj Hindusthan net profit rises 36%

Bajaj Hindustan Ltd (BHL) has recorded a 36 per cent jump in net profit to Rs 190.83 crore during the financial year ending September 30, 2006 against Rs 140.39 crore registered during the same period last year.

The company's revenue has gone up 74 per cent to Rs 1,486.8 crore during FY 2006 against Rs 854.8 crore last year. The Board of Directors has recommended a dividend of 60 per cent (Rs 0.60 per equity share of the face value of Rs 1 each).

"Our results could have been much better but for higher cane prices, lower recoveries due to early start of crushing season. The Government's ban on exports had deleterious impact on domestic sugar realisations," said Mr Shishir Bajaj, Chairman, Bajaj Hindustan.

BHL sugar sales increased 57 per cent during the year under review to touch 7,20,798 tonnes. Industrial alcohol volumes grew by 160 per cent to 67,480 kilolitres.

"The expansion plans of our subsidiary Bajaj Hindustan Sugars and Industries Ltd (BHSIL) is progressing as per schedule and we expect to start crushing 40,000 tcd (tonnes crushing per day) in the next crushing season. Its distillery of 1,60,000 litres per day will become operational by March 2007," said Mr Bajaj.

In the financial year 2006-07, BHL will crush 89,000 tcd while BHSIL has set a target of 6,000 tcd. BHL's two new distilleries each of 1.6 lakh litres per day are expected to be operation by March 2007.

Welcoming introduction of 5 per cent ethanol blending programme, Mr Bajaj said: "With long-term contracts, ethanol revenues will be more stable and mitigate to some extent the cyclicality of the sugar business. We would also commence supplying power to the grid in the current year. Power revenues along with the attendant carbon credits will form another non-cyclical revenue stream for the company".

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