Companies

EID Parry’s Q1 PAT up on 2% stake sale in subsidiary Coromandel International

Our Bureau Chennai | Updated on August 06, 2020 Published on August 06, 2020

“Company’s performance was better than the corresponding quarter of the previous year, on account of better realisation coupled with the aggressive cost reduction measures across all areas”

Murugappa group company EID Parry India has reported a profit after tax of ₹226 crore for the quarter ended June 30, 2020, boosted by an exceptional item of ₹363 crore.

During the first quarter of this fiscal, the company sold 2 per cent stake in its subsidiary, Coromandel International Ltd at ₹629.19 per share aggregating ₹368 crore, according to a statement.

In the year-ago quarter, the company reported a net loss of ₹53 crore.

Revenue during April-June quarter period was higher at ₹491 crore (₹389 crore).

Despite an increase in revenue, it reported a loss before tax and exceptional item of ₹58 crore (loss: ₹92 crore).

“The company’s performance in Q1 2020-21 was better than the corresponding quarter of the previous year, on account of better realisation coupled with the aggressive cost reduction measures across all areas,” S Suresh, Managing Director of the company said in a statement.

The operations of the Company were relatively less affected on account of the lockdowns due to Covid-19 as sugar industry could operate under the essential products category. There were disruptions in the supply chain and logistics, due to which the company could not achieve the planned sales in the retail and institutional segment and also in the production and sale of alcohol.

However, EID Parry was able to export around 40,000 tonnes under the MAEQ (Maximum Admissible Export Quantity) scheme which also helped in better cash flow and profitability.

The proceeds of the 2 per cent stake sale in the subsidiary, Coromandel International have been used to reduce the high-cost debt.. Consolidated nutraceuticals business registered strong growth with a turnover of ₹74 crore (₹47 crore) in the corresponding quarter of the previous year. A stronger offtake in the US market was the key driver, he added.

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Published on August 06, 2020
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