A one-time settlement involving additional price for sugarcane and low sugar prices have taken a toll on EID Parry which has reported a net loss for the third quarter of the current year.
For the quarter ended December 31, 2017, the Murugappa Group company reported a net loss of ₹82.98 crore on a total income of ₹488.68 crore on a standalone basis. During the corresponding quarter in the previous year, it reported a net profit of ₹12.22 crore on an income of ₹564.96 crore.
The results of the two quarters are not comparable as the current quarter includes Parrys Sugar’s numbers which were amalgamated with the company from April 1, 2016, but given effect in results of the third quarter ending December 2017, said the company.
A press release quoting Managing Director S Suresh said the profitability of the sugar division was hit by the ₹ 90-crore, one-time settlement to farmers as additional sugarcane price for the sugar seasons 2013-14 to 2016-17.
Sugar price also dropped steeply in the domestic market and mills off loading stocks to generate cane payment dues to farmers.