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Shree Renuka Sugars posts Rs 2,739 crore net profit in September quarter

PTI     November 10, 2019

Shree Renuka Sugars on Sunday posted consolidated net profit of Rs 2,739.6 crore for the second quarter ended September 30. The sugar producer had reported a net loss of Rs 432.7 crore in the corresponding quarter previous fiscal. Sequentially, it had registered a loss of Rs 411.7 crore this fiscal.

Total income was at Rs 1,413 crore during July-September of 2019-20, up from Rs 1,001 crore in same period of 2018-19, Shree Renuka said in a regulatory filing.

The company's total expenses during the quarter were also up at Rs 1,636.50 crore, as against Rs 1,330.4 crore a year earlier, it said.

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On standalone basis, there was net loss of Rs 36 crore in September quarter this year, compared to Rs 275.10 crore a year ago. Sequentially, the loss was of Rs 159 crore in June quarter.

Income stood at Rs 1,295.1 crore, higher from Rs 956.40 crore in the year-ago quarter. Total expenses during the second quarter increased to Rs 1,531 crore from Rs 1,237.2 crore a year ago.

"As on September 30, 2019 the current liabilities of the group exceeds its current assets by Rs 31,771 million. The group has incurred continuing losses in the previous year ended March 31, 2019 and in current half year ended September 30, 2019 before exceptional items. The Group has negative net worth of Rs 3,505 million as at September 30, 2019.

"The Group management expects to generate operational cash-inflows in the next twelve months, which will support the Group to meets its near future cash obligations," it said in the filing.

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SRSL said the company is in the process of restructuring its non-convertible debentures and has received a letter of intent from Life Insurance Corporation of India (debenture holders) on October 11, 2018.

It has now obtained approval of the shareholders for this transaction on July 19, 2019. Currently, the company is awaiting approval from Stock exchange, SRSL said.

The sugar manufacturer said it has assessed the impact of the changes in the new taxation rule according to which companies can shift to lower rate of 22 percent alongside surcharge and cess, and has decided to continue with the existing tax structure due to carry forwards tax losses and unabsorbed depreciation, unutilised MAT credit.

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The SRSL group is a subsidiary of Wilmar Sugar Holdings Pte Ltd, Singapore (subsidiary of Wilmar International Ltd, Asia's leading agribusiness group), is present across sugar, ethanol, co-generation, trading and engineering segments.

It has seven subsidiaries (India, UAE, Ethiopia) and 13 associate companies (Brazil, Mauritius, Sri Lanka), whose earnings are included in the consolidated results for the quarter.

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