Shree Renuka Sugars, a subsidiary of Wilmar Sugar Holdings, has reported 65 per cent drop in its December-quarter net profit at ₹15 crore against ₹43 crore logged in the same period last year, due to high cost and inventory pile up.
Revenue from operations increased to ₹2,552 crore (₹2,006 crore). Overall expenses jumped to ₹2,548 crore.
The company has managed to wade through the challenges faced by the economy to reflect the resilience of operations, said the company.
Weakening currency, high interest rates and heightened geopolitical risks are some of the key challenges which were navigated, said the company.
Shree Renuka Sugars has commissioned the enhanced ethanol production facilities at Athani and Munoli in Karnataka.
With the enhanced production, overall ethanol capacity increased from 720 kilo litre per day to 1,250 klpd.
Atul Chaturvedi, Executive Chairman, Shree Renuka Sugars said the expanded capacity of ethanol is currently being commissioned and should go a long way in increasing revenue from ethanol.
The flagship consumer brand ‘Madhur’ continues to grow above 20 per cent. Renuka seems to be in a ‘Sweet spot’ and will continue to focus on expanding its footprints in sugar-based ethanol.
Sunil Ranka, Chief Financial Officer said the sugar business profit may stay strong this year as prices remain elevated on an expected decline in global stockpiles and insufficient output globally.
“The sugar business has become stable, and we are moving from a cyclical industry to a stable industry,” he said.