Chennai, Feb 7 (PTI) Sugar manufacturer EID Parry has recorded consolidated net profit at Rs 107.91 crore for the third quarter ending December 31, 2017.
The city-based Murugappa Group company recorded consolidated net profit at Rs 178.84 crore during the corresponding period of last year.
For the nine month period ending December 31, 2017, net profit was at Rs 476.95 crore as against Rs 407.87 crore registered during the year ago period.
Total income for the October-December 31, 2017 quarter was at Rs 3,635.76 crore as against Rs 3,514.66 crore.
For the April-December 31, 2017 period, total income stood at Rs 12,232.56 crore as against Rs 11,347.45 crore.
The company said due to the seasonal nature of the business, figures for the current and previous quarters "are not comparable."
The consolidated sugar operations for the quarter ending December 31, 2017 reported a loss before interest and tax of Rs 52 crore as against profit of Rs 101 crore registered during the year ago period.
Farm inputs division clocked a profit before interest and tax of Rs 326 crore as against Rs 235 crore.
Bio-products division comprising the bio-pesticides and nutraceuticals registered a profit before interest and tax of Rs 12 crore as against Rs 5 crore recorded in the year ago period.
"The profitability of sugar division was impacted mainly on account of one time settlement of additional cane price of Rs 90 crore for sugar season 2013-14 to 2016-17 to the farmers and subdued sugar prices towards second half of the quarter," company Managing Director S Suresh said.
He said the sugar prices came down heavily due to high production and also sugar mills offloading the quantity in the market to pay the cane dues to farmers.
"Hence, sugar volumes could not be sustained during the quarter at targeted prices," Suresh said.
He said the cane crush quantity has been lower due to delayed start in Karnataka mills.
"However, the overall sugar season is expected to be normal (during the financial year 2017-18)," Suresh said.
The bio-pesticides division witnessed a better performance with higher sales and better margins on account of improved neem seed availability at lower prices. PTI VIJ BN