Shree Renuka Sugars (RENUKA) Q4 07/08 earnings summary

Executive summary

• FY2007-08 consolidated total income rose 120% YoY to ₹21,295 million; EBITDA increased 79% to ₹2,678 million, PBT 51% to ₹1,608 million and PAT 61% to ₹1,339 million.

• Integrated sugar, trading, ethanol and power operations supported growth; renewables contributed 28% of revenue and 77% of manufacturing profit.

Financial highlights

• Standalone turnover, net of excise and including other income, grew 144% to ₹18,246 million; standalone EBITDA rose 81% to ₹2,187 million.

• Standalone PBT rose 46% to ₹1,137 million; reported PAT was ₹745 million, or ₹927 million including ₹182 million depreciation write-back.

• Consolidated EPS was ₹4.31 versus ₹33.01, reflecting the April 2008 share split from ₹10 to Re.1 face value; standalone EPS was ₹2.78 versus ₹21.04 on the same split basis.

• Consolidated operating cash flow was ₹107 million versus ₹452 million; investing outflow was ₹5,323 million, largely reflecting fixed-asset and investment purchases.

Outlook and guidance

• Ethanol capacity was targeted to increase from 600 KLPD to 900 KLPD in SY2008-09, with flexible production from molasses and/or sugarcane juice.

• An additional 40.5 MW of co-generation capacity was expected to become operational in 2008-09; renewable products were projected to reach 50% of revenue within two years.

• Strategic priorities included industry consolidation, expanding fuel-ethanol leadership and developing bagasse-based power projects with cooperative-sector operators.