Investor Centre : Press Releases
Simbhaoli Sugar net profit records 150% growth to Rs. 29.60 crore for FY 2005-06 Board has recommended a dividend of 30%
Simbhaoli Key Indicators:
- Gross Turnover higher by 16.07% at Rs. 591.29 crore,
- PBT higher by 103.8 % at Rs. 45.47 crore,
- PAT higher by 149.69 % at Rs. 29.60 crore, and
- EPS for 12 months increased 110% at Rs. 18.19 per equity share.
New Delhi , June 1, 2006 : The Simbhaoli Sugar Mills Limited (SSML), the largest integrated sugar refinery in India, has reported a 10.94 per cent growth in net revenue of Rs 438.59 crore in the financial year ended March 31, 2006 as against Rs 395.33 crore in the previous financial year. Simbhaoli Sugar’s net profit during the year increased by 149.69% to Rs 29.60 crore as compared to Rs 11.85 crore in the previous financial year. During fourth quarter of the fiscal, Simbhaoli Sugars recorded revenue of Rs 114.60 crore while net profit after tax was at Rs 6.02 crore.
The consolidated EPS having grew by 109.5% to Rs 18.19 per share. The board has also recommended a dividend of 30%.
Explaining the improvement in operational performance, Dr G.S.C. Rao, Executive Director , SSML , said, “We have achieved desired growth in turn over, while net profit has shown a significant growth in the financial year 2005-06. This is mainly due to improvement of Rs. 120 per quintal of sugar in realizations and concentration on production of value-added products in sugar and alcohol segments. We have made a beginning of selling surplus co-generation power which will increase significantly in future. I am also happy that we are developing economies of scale in our sugar business, which currently appears well poised due to factors, both domestic as well as international.”
“We have been able to implement all the projects we have planned for the year including expansion of crushing capacity of Simbhaoli Sugar unit to 9,500 TCD and Ethanol Distillation Capacity to 60,000 Litres a day. Today we have a healthy balance sheet with strong coverage and leverage ratios, which will enable us to grow further. We have planned a capital outlay of around Rs 403.7 crore in the financial years 2005-06 and 2006-07 across all our businesses,” adds, Dr. Rao.
“We aim to establish Simbhaoli Sugar as a leading player in all of its businesses. We are thankful to all our shareholders who have reposed their faith in us and we remain committed to continually enhancing shareholder value,” added Mr. S. Tapriya, Director – Finance & Company Secretary, Simbhaoli Sugar Mills Limited.
In the last crushing season Simbhaoli crushed 14.8 lakh tonnes of sugar cane. SSML has announced the expansion of the crushing capacity to 20,100 TCD by November 2006. This would be done by setting up of a new facility at Brijnathpur with crushing capacity of 4000 TCD, which will be the least energy consuming facility in India . The Company is doubling its current ethanol production output from 18 million litres per annum to 36 million litres per annum by setting up two new 60 KL/D ethanol plants one adjacent to its Chilwaria Sugar Unit (Eastern U.P.) and other at Brijnathpur. The production at Chilwaria would commence in July 2006 and at Brijnathpur in November 2006. The Company has already bagged order for supply of 6 million per annum ethanol supply to oil majors in Uttar Pradesh. It is negotiating another order for supply of 5 million litres of ethanol to Haryana. Presently, nine Indian states have been identified for 5% ethanol - blended petrol (EBP) prog ram me.
During the year 2005-06, the company had offered zero coupon convertible bonds of US $ 33 million having a maturity period of five years. The bonds are convertible at a price of Rs 170 per share and the proceeds would be utilized for meeting out the capital expenditure requirements for the ongoing projects.
About SSML: 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. SSML is a major supplier to a multinational and domestic customer base that includes Coca-Cola, Heinz, PepsiCo, GlaxoSmithKline, Haldiram’s, Oberoi Hotels, Taj Group of Hotels, and Jet Airways. Currently, SSML 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. 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.