Shree Renuka Sugars Q2 net loss at ₹104 cr on higher expenses

Shree Renuka Sugars Ltd (SRSL) a Wilmar Group Company, has posted a net loss of ₹104.1 crore on revenue of ₹2,152.4 crore for the quarter ended September 2022.

During the corresponding quarter of previous year, the company had posted a net profit of ₹158.1 crore on revenue of ₹1,417.2 crore .

Compared to the June quarter this fiscal, the company’s losses expanded marginally on higher expenses. SRSL had posted a net loss of ₹103.4 crore on revenue of ₹1,940.1 crore in the June quarter this year.

Volume and price drive H1 growth

Total income for the first half this fiscal was up 84 per cent, driven by volume and price growth across all segments at ₹4,092.5 crore over same period of previous year’s ₹2,223.9 crore. Net losses for the first half were up at 207.5 crore over same period last year’s 70.2 crore.

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“The second quarter’s results reflect the resilience of our operations that despite humongous challenges we have been able to withstand the headwinds and come out stronger. Macro issues like soaring global inflation, high interest rates, volatile crude prices, weakening currency coupled with heightened geopolitical risks and Russia-Ukraine standoff continue to plague businesses. Our total income for H1 has increased by 84% over the previous year. The company posted a strong H1 performance driven by strong volume growth and improved sales realizations.

Growth was led by Refinery (79%) & Distillery (68%). Consumer pack sales grew by 10%. We remain positive for the sector and during the current season we expect record sugarcane availability which we believe will enable us to deliver robust H2 performance” said Atul Chaturvedi, Executive Chairman, SRSL said

Distillery business perform well

SRSL distillery produced during H1FY23, 6.71 crore litres with a growth of 149 per cent. Despatches were up by 68 per cent to a record 9.44 crore litres. “Our strategy of storing “B” Heavy & “C” molasses ensured that our distilleries ran during off season as well,” he said.

Sunil Ranka, Chief Financial Officer said “Shree Renuka Sugars has delivered a strong financial performance in the second quarter with an H1FY23 EBITDA growth of 926%. Refinery revenues and margins were better as compared to the previous year which has enabled the EBITDA levels to move upwards to ₹220.5 crore from ₹21.5 crore in the previous year. The management is strongly focused on driving growth in all business segments and well poised to improve profitability.” 

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