EID Parry posts ₹339-crore Q3 PAT on stake sale in Coromandel

Murugappa group company EID Parry India has reported a standalone profit after tax of ₹339 crore for the quarter ended December 30, 2020, boosted by an exceptional income of ₹366.60 crore on account of its 2 per cent stake sale in its subsidiary, Coromandel International Ltd.

In the year-ago quarter, the company reported a loss after tax of ₹20 crore.

The company’s revenue for the December 2020 quarter stood at ₹439 crore as against ₹437 crore in the same period previous fiscal. Its EBITDA stood at ₹31 crore as compared to ₹27 crore.

Also read: EID Parry sees growth in branded business with value-added products

“Performance during the quarter was impacted due to increase in Fair & Remunerative Price 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,” S Suresh, Managing Director, said in a statement.

The company continues to focus on sweating the assets along with cost and cash management. The board of directors has approved the closure of Pettavaithalai unit, which had not been in operations for the past few years.

The company proposes to transfer assets of the units to its other units/dispose of other assets as it deemed appropriate. Consequently, the company has charged ₹83.32 crore to the profit and loss account (representing ₹65.53 crore of impairment charges and ₹17.79 crore towards dismantling / transportation expenses) for the third quarter and nine-month period. Also, the company has impaired goodwill of ₹14.52 crore relating to Ramdurg factory based on evaluation of the recoverability, being a leased plant.