Shree Renuka Sugars turns corner

India’s largest sugar refiner Shree Renuka Sugars (SRS) has reported a turnaround in its quarterly financial performance with a standalone net profit at ~4.3 crore for the quarter ended March 31, 2015 as compared to a net loss of ~88.3 crore for the corresponding quarter last year.

The total income from the company has declined by 10 per cent to ~1,684 crore for the fourth quarter of the financial year 2014-15 as against ~1,866.6 crore for the same quarter last year.

Narendra Murkumbi, vice-chairman and managing director of the company, attributed the turnaround in company’s performance to extended emphasis on branded sugar “Madhur” which fetched ~2-3 a kg higher than the bulk sugar price of ~2424.5 a kg at the factory gate.

With improved refining margins due to low raw sugar prices and high ethanol realisation at ~40.5 a litre now (as against ~34-34.5 a litre in the same quarter last year), SRS hopes that its branded sugar and ethanol segments to do better in future as well.

Improved business was also indicated in its sugar inventory which stood at ~532.5 crore for the quarter ended March 31, 2015 as compared to ~215.4 crore in the same quarter previous year.

For the full financial year 2004-15, however, net loss of the company stood at 295.1 crore as against net loss of ~166.1 crore for last year. Also, a decline was reported in total income at ~5,748.1 crore in the financial year 2014-15 as against ~6,577.1 crore in the previous year.