Shree Renuka Sugars (RENUKA) Q4 03/04 earnings summary

Executive summary

• FY ended 30 Sep 2004: gross revenue Rs 26,557.15 lacs; profit after tax Rs 1,227.14 lacs, up from Rs 279.39 lacs YoY.

• Higher domestic sugar prices and increased ethanol production supported earnings; merchant-export turnover declined after Indian sugar exports ceased.

• Manufacturing revenue rose to Rs 18,939 lacs from Rs 16,097 lacs, while non-sugar revenue reached Rs 5,800 lacs, 31% of manufacturing revenue.

Financial highlights

• Gross revenue Rs 26,557.15 lacs vs Rs 33,038.65 lacs YoY; operating income after excise duty and other income was Rs 25,174.05 lacs.

• Profit before financial expenses and depreciation Rs 3,357.41 lacs vs Rs 2,266.06 lacs; PBT Rs 1,517.40 lacs vs Rs 426.93 lacs.

• PAT Rs 1,227.14 lacs vs Rs 279.39 lacs; financial expenses Rs 1,132.52 lacs and depreciation Rs 707.49 lacs.

• Net current assets Rs 2,952.53 lacs; fixed-asset net block Rs 9,620.32 lacs at 30 Sep 2004.

Outlook and guidance

• Completed cogeneration expansion from 11.2 MW to 20.5 MW and installed a sugar refinery with 500 MT processing capacity.

• A 450 m³/day wastewater-recovery plant was ordered, with commissioning expected by Dec 2004; R&D trials reused recovered water in distillery processes.

• Alternative opportunities in sugar export-import trade were being explored following the cessation of Indian exports.