On stand alone basis the company recorded 17% growth in Q3 FY09 revenue to Rs 715.50 crore mainly due to 177% higher revenue from sugar division at Rs 586 crore despite lower trading volume (the revenue from trading activity declined 81% Y-o-Y to Rs 67.10 crore against Rs 345.10 crore). During the quarter the company has sold about 260,000 tonne of sugar. The revenue from cogeneration increased 29% to Rs 80.10 crore and that from ethanol division increased 47% to Rs 37.80 crore. The OPM for the quarter surged up by 540 bps to 17.1%. The PAT at the end stood at Rs 61.10 crore, 166% higher on Y-o-Y.

Consolidated performance for the quarter ended June 2009

On the back of higher sugar prices during the quarter under review, the net consolidated revenue of the company for the third quarter ended June 2009 surged 28% Y-o-Y to Rs 893.50 crore. The company's sugar division contributed Rs 586 crore in top-line with highest contribution in profitability for the company. The OPM of the company also improved by 640 bps to 17.4% mainly due to improved sugar realization. The increased OPM resulted in 103% growth in operating profit to Rs 155.70 crore. The company has other losses of Rs 3.90 crore during the quarter against other income of Rs 5.10 crore in Q3 FY08. With higher Interest and depreciation charges (9% and 72% higher on Y-o-Y to Rs 23.10 crore and Rs 17.40 crore) and 142% higher tax outgo at Rs 33.70 crore (while the effective tax rate increased from 27.6% to 30.3% on Y-o-Y), the net profit before minority interest stood 113% higher at Rs 77.60 crore. After considering minority interest of Rs (0.50 crore), the PAT stood at Rs 78.10 crore, up 114% Y-o-Y.

Consolidated performance for the Nine months ended June 2009

Net sales for 9M FY09 stood 17% higher at Rs 1722.70 crore, on the back of firm sugar prices in second and third quarter. The OPM improved 510 bps to 17.2% while the operating profits recorded increase of 66% Y-o-Y to Rs 296.10 crore. Other income of the company during the period increased by 20% to 12.20 crore. However, the higher interest cost (78% higher at Rs 87.40 crore) and depreciation charges (76% higher at Rs 47.90 crore), resulted in 54% increase in PBT at Rs 173 crore. The total tax outgo for the period was 52% higher at Rs 49.10 crore while the effective tax rate increased to 34% from 33.3% in corresponding previous period after considering which net profit before minority interest for the period stood at Rs 123.90 crore, 56% higher on Y-o-Y. After adjusting for Rs 1.60 crore for minority interest (Rs 0.70 crore in 9M FY08) and Nil for prior period adjustments (Rs 18.20 crore in 9M FY08 relating to depreciation written back), the PAT after prior period adjustments stood 26% higher at Rs 122.30 crore.

Standalone performance for the quarter ended June 2009

On stand alone basis the net revenue for Q3 FY09 stood 17% higher at Rs 715.50 crore mainly due to 177% higher revenue from sugar division at Rs 586 crore despite lower trading volume (the revenue from trading activity declined 81% to Rs 67.10 crore against Rs 345.10 crore in Q3 FY08). The revenue from cogeneration increased 29% to Rs 80.10 crore and that from ethanol division increased 47% to Rs 37.80 crore. The OPM for the quarter surged up by 540 bps to 17.1% on the back of higher sugar prices resulting in 72% higher operating profit at Rs 122.10 crore. As a combined result of increased other income (Rs 9.30 crore in Q3 FY09 against loss of Rs 3.50 crore in Q3 FY08), increased interest cost (7% higher at 22.60 crore) and higher depreciation charges (66% higher at Rs 16.40 crore), the PBT surged up 154% and stood at Rs 92.40 crore. After considering provision of tax of Rs 31.30 crore (134% higher Y-o-Y while the effective tax rate over PBT dipped from 36.8% to 33.9%), the PAT stood at Rs 61.10 crore, 166% higher on Y-o-Y.

Sugar division

The revenue from sugar division for the quarter surged up 177% Y-o-Y to Rs 585.90 crore contributing 76% of the company's total revenue while the PBIT margin surged up to 14.7% against 4.7% in Q3 FY08 with PBIT zooming up from Rs 9.90 crore in Q3 FY08 to Rs 86.30 crore in Q3 FY09. The company has sold about 260,000 tonne of sugar during the quarter.

Trading division

The revenue from this division for the quarter has significantly dipped to Rs 67.10 crore against Rs 345.10 crore in Q3 FY08. The PBIT from the segment slipped to 0.70 crore against Rs 9.50 crore in Q3 FY08 with PBIT margin declining from 2.8% to 1%.

Cogeneration and ethanol

The revenue from cogeneration division increased 29% to Rs 80.10 crore while that from distillery division (ethanol) increased by 47% to Rs 37.80 crore contributing 10% and 5% of the total revenue respectively. At PBIT level, the profit from cogeneration dipped 42% to Rs 20.30 crore while that from Ethanol division declined by 15% to Rs 9 crore. The PBIT margins from cogeneration and ethanol division slipped from 25.3% and 23.8% to 56.8% and 41.2% respectively.

• The company has allotted 36,936,840 equity shares of Re.1/- each at the issue price of Rs 137/- per share, and raised an amount of Rs 506.04 crore by way of QIP Issue. Accordingly the issued and paid up capital of the company has increased from Rs 28 crore to Rs 31.7 crore.

• The company has decided to increase refining capacity at its Athani unit in Karnataka to 2,000 tonne per day (tpd) from 1,000 tpd. It will also build a new sugar refining capacity of 1,000 tpd at Havalga, Karnataka. The capacities are expected to be commissioned by December 2009. With the commissioning of the refineries, the company's sugar refining capacity will increase to 6,000 tpd, which includes the 2,000 tpd port-based sugar refinery at Haldia, West Bengal and 4,000 tpd refining capacity at three of its integrated sugar mills in Karnataka.

• During the quarter the company has hiked stake in subsidiary KBK Chem-Engineering to 80.28 percent from the 54 percent earlier.

Promoters Holding

The promoters holding during the quarter under review has decreased from 41.15% at the quarter ended Mar'09 to 39.01% at the quarter ended Jun'09. None of the shares have been pledged as on 30^th June 2009.

Currently the shares of the company are trading about Rs 144 (LTP on 21^st July 2009) at BSE.