Investor Centre : Press Releases
Simbhaoli Sugars announces results for Q2FY07 Net Turnover increases by 55%, adds new institutional customers for sugar
New Delhi: October 30, 2006: Simbhaoli Sugars Limited, the largest integrated sugar refinery in India, has recorded a gross turnover of Rs 155.62 crores for Q2 FY07, an increase of 41% from the corresponding quarter in the last fiscal. Further, the revenues from distillery segment have increased from 62 crores of the Q2 of 2006 fiscal to 66 crores in this quarter. The company remained completely focussed on its strategy of de-risking its business model and took significant steps towards product and capacity expansion and launches in its Distillery segment. Despite these expansions and lower sugar realisations, the company reported a net profit after tax of Rs 2.02 crores during the quarter. The operating profit for the quarter was Rs 11.04 crore.
The company sees a robust time ahead with all its expansion plans being implemented successfully in the coming two quarters.
Commenting on the results, Mr. Sanjay Tapriya, Director-Finance, Simbhaoli Sugars said, “The sugar prices have declined in the last quarter; coupled with higher cost of production, which has led to decline in profitability across the industry. The figures for the corresponding previous quarter aren’t comparable as there was an extra-ordinary income of Rs 12.03 crores in Q2FY06. The onset of new crushing season, coupled with prospects of lifting of ban on sugar exports and supplies of ethanol to petroleum companies promises a better future ahead. The commissioning of new capacities in Q3 of the fiscal would provide boost to our sales and profitability.
During this period, the name of the Company has been changed to ‘Simbhaoli Sugars Limited’ as in line with the diversifying revenues plan of the Company and approved by the shareholders.
The Company’s Chilwaria plant - where both the new ethanol plant and the sugar division with expanded capacities have come up, would start commercial production in December quarter. The Greenfield Brijnathpur sugar division - which would produce sugar of very high quality i.e. less than 30 ICUMSA, would also start production in the December quarter.
Simbhaoli has made a significant client addition in this quarter, particularly in the pharmaceutical sector because of the extra-refined sugar and has been able to fetch a price realisation of Rs. 1808 per quintal. Apart from this, the Company has also received orders from Cadbury’s for supplying upto 3000 tonnes of sugar and an order to provide sugar sachets to Taj hotels.
Simbhaoli has started taking stringent marketing initiatives, which has enabled in strengthening the position of its products vis-à-vis its competitors. Presently, the IMFL brands of Simbhaoli Sugars are being sold in 8 states, of which 2 have been added in Q2 FY07. It has plans to add 2 to 3 new states every year to its bandwagon and expects considerable revenues from the same.
“Simbhaoli is moving completely in line with its plan of de-risking the business model by adding more institutional buyers, focussing on the production of high quality sugar and generating revenues across sectors from sugar, power and ethanol” said Dr. G.S.C. Rao, Executive Director of the company on the future prospects of the Company.
With a product portfolio diversified into a wide range of speciality sugars, co-generation of power, potable alcohol, ethanol and bio-manure, apart from standard sugar, the Company expects revenues from several segments and thereby foresees a robust year ahead.
Simbhaoli Sugars Limited:
Simbhaoli Sugars Limited (SSL) (BSE SCRIP ID: SIMBHALS, NSE SYMBOL: SIMBHSUGAR), formerly known as The Simbhaoli Sugar Mills Limited (SSML), is one of India’s leading producers of high quality sugar and operates one of the largest integrated sugar complexes in India. It produces and sells international standard refined, pharmaceutical-grade and specialty sugars to the retail and bulk institutional consumer segments. Its sugar brand, Trust, commands a significant share of the north Indian market. SSL is a major supplier to a multinational and domestic customer base that includes Indian Railways, Airlines, Coca-Cola, Heinz, PepsiCo, GlaxoSmithKline, Haldiram’s, Oberoi Hotels, Taj Group of Hotels, and Cadbury’s. Presently, SSL operates two technologically advanced sugar-manufacturing facilities in Simbhaoli and Chilwaria, both located in Uttar Pradesh. The company’s facilities have a total installed sugarcane crushing capacity of 13,300 TCD and are capable of manufacturing up to 200,000 MTPA of sugar. With the ongoing growth plan in place, the sugar crushing capacity will go upto 20,100 TCD from December 2006 onwards. The Company also utilizes a significant proportion of the by-products from the sugar production process to co-generate power and manufacture ethanol, alcohol and bio-manure for sale to third parties. Simbhaoli Sugars Ltd (SSL) has recently announced commissioning of its new Ethanol plant at Chilwaria (District Bahraich, UP) with an installed capacity of 60 KL/D. For more information, visit http://www.simbhaolisugars.com.