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EID Parry announces unaudited financial
results for the quarter ended June 30, 2007
Chennai, 26th July 2007: The turnover of
E.I.D. - Parry (India) Limited for the quarter ended 30th June, 2007
was Rs.79.44 crore (Rs.176.16 crore). A loss of Rs.14.13
crore (Gross profit of Rs.28.69 crore) was incurred at the operating
level. Other income in the first quarter of the previous year included
Rs.118.12 crore being profit on sale of shares of Parryware Glamourooms
Private Ltd. After absorbing interest cost of Rs.0.45 crore
(Rs.0.08 crore) and depreciation of Rs.10.69 crore (Rs.7.23
crore), the Loss for the period was Rs.25.27 crore (Profit
of Rs.139.50 crore).
Low domestic and international prices, rupee appreciation
making exports unattractive and the inventory carrying cost have
resulted in a Net Loss of Rs.25.41 crore. The selling price of sugar
prevailing now is lower than the cost of production.
The Government has created a buffer stock of 5 million
MT. Reserve Bank of India has advised the banks to waive the margin
requirements for the buffer stocks for a period of one year from
1st May 2007. While Governments of major sugar producing states
have announced relief packages for the sugar mills. The Government
of Tamil Nadu is yet to take any steps to mitigate the sufferings
of the mills and this is affecting the financial performance of
the company.
As a member of Indian Sugar Mills Association and
South Indian Sugar Mills Association, the company has been seeking
relief measures from the Government.
Sugar Division
During the quarter, the company crushed 13.42 lakh tonnes of
cane compared to 10.76 lakh tonnes in the corresponding period of
2006-07. The overall production of sugar was 122427 MT (95913 MT).
The average sugar realization per MT for the quarter was Rs.13712
compared to Rs.18228 for the corresponding period of 2006-07. The
company exported 640 lakh units to the TNEB Grid compared to 431
lakh units for the corresponding period of 2006-07.
While the Sugar Segment reported a loss of Rs.38.42
crore for the quarter (Profit of Rs.17.45 crore), the PBIT for the
Cogeneration Segment was Rs.10.87 crore (Rs.5.46 crore) and the
Distillery Segment Rs.3.70 crore (Rs.1.04 crore).
Bio-products division
Both the Neem based pesticides and the Nutraceuticals performed
better than the corresponding quarter of 2006-07.
The Bio-pesticides Segment reported a loss of Rs.0.87
crore for the quarter (Rs.1.87 core) the PBIT for the Nutraceuticals
Segment was Rs.0.60 crore.
Interest
Higher level of inventory and lower sugar realisation have resulted
in higher interest cost of Rs.0.45 crore for the quarter compared
to previous year.
Projects
The 20 MW Cogeneration Project at Pettavaittalai and sugar production
capacity increase to derive operational efficiencies and to match
the cogen facility are progressing well. The company is also in
the process of putting up distilleries at Pudukottai and Sivaganga
to produce value added products from molasses.
Joint Venture with Cargill
The Government of India on 22.6.2007 sanctioned setting up a Special
Economic Zone at Kakinada. The proposed Sugar Refinery of the joint
venture company, Silkroad Sugar Private Ltd. will be located in
this SEZ. EID's holding in this Joint Venture is 50 per cent.
About the Murugappa Group
Headquartered in Chennai, the USD $2 billion (Rs.8500 crore)
Murugappa Group is India's leading business conglomerate. Market
leaders in diverse areas of business including engineering, abrasives,
finance, general insurance, sanitaryware, cycles, sugar, farm inputs,
fertilisers, plantations, bio-products and nutraceuticals, its 29
registered companies have manufacturing facilities spread across
12 states in India . The organization fosters an environment of
professionalism and has a workforce of over 28,000 employees.
The Group has forged strong joint venture alliances
with leading international companies like Roca, Cargill, Cerdak,
DBS Bank, Mitsui Sumitomo and Groupe Chimique Tunisien and has consolidated
its status as one of the fastest growing diversified business houses
in India.
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