Highlights of the call:

• Consolidated revenues fell by 7% to Rs 400.16 crore for the quarter ended September 2011. However, the Company reported net profit Rs 4.01 crore compared to net loss Rs 75.29 crore in the corresponding previous period.

• Revenues from the Sugar division (87% of total sales) fell by 11% to Rs 355.99 crore for the quarter ended September 2011, on the back of lower sugar sales volume compared to the corresponding previous period. However, it has posted segment profit Rs 31.46 crore at the PBIT level compared loss Rs 50.79 crore in the corresponding previous period.

• The lower sugar sales volume during the quarter compared to the corresponding previous quarter is due to sales of processed raw sugar in quarter September 2010.

• Revenues from the Power grew by 11% to Rs 15.69 crore for the quarter ended September 2011. However, it has posted segment profit Rs 2.00 crore compared to loss Rs 1.15 crore.

• Revenues from the chemical/Ethanol business (9% of total sales) grew by robust 33% to Rs 36.75 crore for the quarter ended September 2011, on account of higher sales volumes and improved ethanol realizations. However, it has posted segment profit Rs 4.33 crore compared to the segment loss Rs 7.98 crore.

• The Chemical/Ethanol segment registered improved performance during the quarter, as a result of reduction in raw material cost and improved Ethanol realizations compared to corresponding previous period last year.

• The interest cost is higher by 25% to Rs 28.02 crore for the quarter ended September 2011. The rise in interest rates and increased borrowings of working capital has resulted in higher interest cost.

• The sugar inventories stood at 0.64 lakh tones as on 30^th September 2011. The average cost of inventories is at Rs 24.54 per kg combined for free sale & levy sugar.

• The average free sales sugar realizations improved to Rs 28.76 per kg for the quarter ended September 2011 compared to Rs 26.67 per kg in the corresponding previous period.

• The refined sugar sold under its premium brand ‘Dhampure' contributed to 44.7% of the total free sugar sales value in the quarter ended September 2011.

• During the quarter, it exported 2.39 crore units of power to the state grid at an average realization of Rs 4.67 per unit. Further, the average realizations for chemicals and rectified spirit/Ethanol/ENA/SDS stood at Rs 54080 per tonne and Rs 26390 per KL respectively. Further, The supply of ethanol at Rs 27 per liter fixed as interim price by OMC's to reduce volatility and augment earnings.

• The Company expects the cane crushing to be10% higher for the sector in Sugar season 2011-12. Further, due to the higher availability of cane and improvement in recovery rates sugar production expected to increase to 26 MT. 

• It expects the lower Brazilian sugar output sustaining international sugar prices in the range of USD 600-700 per tonne. It expects exports to be 2-3 MT tones of Sugar for the SY'12. 

• The Company expects the adverse impact on the margins in the sugar segment on the back of High cane price of Rs 240 per quintal fixed by UP Govt. However, case was filed by UP millers association in the Allahabad bench of high court and an interim order is expected.

• It expects to enhance the power sales for the next sugar season due to the more availability of bagasse. Further, Its exportable co-generation capacity is at 85 MW and expects to sell power above Rs 4.0 per unit going forward. Also the Chemical/Ethanol business expected to contribute positively due to better availability of molasses. 

• It continues to focus on Power division to offset the cyclicality of the sugar business as it expects to provide the earnings cushion during the down cycle. 

• It expects the increased off-take of ethanol to OMC companies at remunerative price with mandatory ethanol-blending programme being implemented by the Central government. 

• The total consolidated debt is at Rs 672.28 crore as on 30^th September 2011 compared to Rs 916.57 crore as on 30^th September 2010. The average cost of the debt is at 9.75%. Further, it indicated that it has USD 10 million ECBs.