Sugar manufacturer EID Parry on Tuesday reported a standalone net profit of Rs 22.47 crore for the quarter ended June 30 and said merger of Parrys Sugar Industries with it would be completed this fiscal.
The company had posted a net loss of Rs 7.18 crore during the same period last fiscal.
“The process of gradual merging of Parrys Sugar Industries Ltd into EID has also begun and during the year 2012-13 this will be given effect to,” EID Parry Chairman A Vellayan said at the company’s 37th AGM here.
“This would enlarge EID’s scope of operations in the future. Technology upgradation,reduction in cyclicality and diversification into value added products,would be the drivers of the future growth,” he added.
The standalone total income of the company for the quarter ending June 30,2012 stood soared to Rs 578.07 crore from Rs 398.49 crore registered during the same period of last year.
During the quarter ended June 30,2012,the company crushed 16.44 lakh tonnes of sugarcane as against 12.96 lakh tonnes in the corresponding period last fiscal.
Stating that operations of Parrys Sugar have improved substantially since the management of EID Parry took over,he said the units of this company were well placed to have a profitable year ahead.
Under the merger scheme,he said the company would issue equity shares of EID parry to the shareholders of Parrys Sugar Industries Ltd in the ratio of five equity share of Re 1 each fully paid for every 19 equity shares of Rs 10 each fully paid,held by them in Parrys Sugar Industries Ltd.
Quoting Indian Sugar Mills Association (ISMA),Vellayan said sugar production was estimated to be 260 lakh tonnes.
“Till June this year,257 lakh tonnes has been produced. ISMA lowered its all India sugar production estimate for 2012-13 by close to four per cent as it expects output in biggest sugar producing State Maharashtra to decline by 16 per cent,” he said.
He said due to delayed monsoon across the country,sugar production for 2012-13 has been affected and output is likely to be lower than 2011-12 at 250 lakh tonnes from current year’s estimated output of 260 lakh tonnes.
On the company’s sugar division performance he said the company’s total production was 4.37 lakh tonnes as compared to 2.89 lakh metric tonnes,representing growth of 151 per cent.
“In terms of revenue,sugar division registered Rs 1,448 crore for the year 2011-12 as against Rs 1,189 crore in the previous year with a profit of Rs 58 crore,registering a growth of 122 per cent”,he said.