Shree Renuka Sugars Ltd (SRSL), a large sugar and ethanol producer, cut down its losses for the quarter ended June to ₹103.4 crore against ₹228.3 crore in the same period last year on higher income. Total income for the June quarter was up 141 per cent at ₹1,940 crore compared to ₹806 crore in the same period last year.
Gross profit improved to ₹320 crore (₹77.9 crore). The company posted strong Q1 performance driven by double digit volume growth and higher margins across all its business segments. Sugar refinery business grew 175 per cent during the quarter, while distillery business was up 89 per cent. Sales of sugar consumer packs grew 4 per cent, while realisations remained robust and improved by five per cent.
Distillery had a record production of 4.62 crore litres despite being off season due to availability of stored molasses, compared to 1.84 crore litres produced in the previous year, the company said in a statement.
Atul Chaturvedi, Executive Chairman, SRSL, said the results must be seen in the light of soaring global inflation, high interest rates, high crude prices and weakening currency.
Optimistic on growth
“Commodity markets remain very volatile, compelling Government to resort to export restrictions. Our total income for the quarter has increased by 141 per cent over the previous year. Revenues have grown significantly across all segments with better sales realization. With the onset of good monsoon in the country, we anticipate better sugarcane availability in the upcoming season (October-September) also. Besides improving the balance sheet and cash flows of sugar mills, higher ethanol sales has ensured timely payment of cane dues to farmers and balance out sugar inventories. We remain very optimistic in the financial performance and overall growth of our company,” Chaturvedi said.
Sunil Ranka, CFO, said: “Shree Renuka Sugars has delivered a strong financial performance in the first quarter with a gross profit growth of about 311 per cent and EBITDA growth of 359 per cent. “High volumes and margins propped up EBITDA up to ₹110.2 crore from negative ₹42.5 crore in the previous year. Ethanol blending program has been a game changer for the sugar sector and this has de-risked the seasonal and cyclical nature of business. Good monsoon, strong sugarcane planting and government policies will keep Renuka on the growth path,” Ranka said.