Shree Renuka Sugars (RENUKA) Q4 05/06 earnings summary

Executive summary

• FY05-06 consolidated revenue reached Rs 11,110.83 million, up 39.27% YoY; PAT rose to Rs 1,204.87 million from Rs 561.04 million.

• Growth reflected stronger sugar prices and yields, increased production, and trading activity; performance came despite export restrictions and market volatility.

Financial highlights

• Consolidated EBITDA was Rs 1,663.43 million vs Rs 872.74 million; PBT was Rs 1,387.70 million vs Rs 644.22 million.

• Consolidated EPS rose to Rs 51.34 from Rs 32.76; equity dividend recommended at 20%, or Rs 2 per share.

• Standalone revenue was Rs 8,065.91 million, up 25.73%; standalone PAT was Rs 562.70 million, up 38.14%.

Outlook and guidance

• An investment programme of ~Rs 7 billion targets ethanol, cogeneration and refining capacity to diversify earnings across sugar cycles.

• Athani SEZ plans include an integrated sugarcane-processing complex, 120 KLPD distillery and 38 MW cogeneration plant; regulatory compliance was being finalized.

• Ethanol blending was relaunching at 5% nationally, with a 10% blend targeted when supplies permit; power trading opportunities were growing after electricity reforms.