E.I.D.-Parry (India) Ltd has reported multi-fold growth in net profit for the second quarter ended September 30, as compared to the corresponding quarter last year.
The company has reported a net profit of Rs 49.48 crore (Rs 9.94 crore) on a turnover of Rs 415.01 crore (Rs 286.21 crore).
Strong increases in sugarcane area have led to the growth in turnover and profits, which have been supported by revenues from cogeneration and distillery, according to its managing director, Mr Ravindra S. Singhvi.
Addressing media persons at a press conference following the announcement of results, he said the company has crushed over 40 lakh tonnes during the 2010-11 season in its mills in Tamil Nadu and Pondicherry against 24 lakh tonnes in the previous season. The company expects a 25 per cent increase in 2011-12, he said.
South Indian presence
Backed by a strong performance, the company which has established a presence across South India through acquisitions in Karnataka and Andhra Pradesh will now look at expanding into Gujarat and Maharashtra in the long term. Its immediate plans are to consolidate its presence in South India by 2013-14, he said.
Emphasis will be on mechanisation and drip irrigation. Over the last one year it has purchased 14 harvesters at an average of about Rs 1.5 crore a machine. In two more years it will invest over Rs 100 crore to buy 40-50 machines, he said.
It has a daily sugarcane crushing capacity of about 19,500 tonnes in Tamil Nadu and Pondicherry, and about 13,000 tonnes in Andhra Pradesh and Karnataka, through its subsidiaries and group companies — Sadashiva Sugars and Parry Sugar — totalling 32,500 tonnes. This will increase to about 36,000 tonnes soon. In addition, it has over 146 MW of cogeneration and four distilleries with a total capacity of 230 kilolitres a day linked to these mills.
On the company's sugar refinery joint venture with Cargill, through which it has set up the Silkroad Refinery at Kakinada, Mr Singhvi said natural gas availability is an issue and it has sought the Andhra Pradesh Government's clearance to set up a coal-based boiler. This will involve an investment of about Rs 60 crore, he said.