The Coimbatore-based sugar company and diversified entity disappointed amidst difficult conditions even as government attempts to decontrol the industry
Rajashree Sugars & Chemicals, which is into sugar, distillery, power and biotechnology and based in Coimbatore, has reported a net loss of Rs13.05 crore for the quarter ended in December 2012 which is improved and better than the Rs25.37 crore net loss it had recorded in the corresponding period last year. However, on a quarter-on-quarter basis, it has gone from profit to loss. For the September quarter, it had recorded net profit of Rs13.25 crore.
The story is the same for net sales as it plummeted 14%, to Rs150.86 crore for the quarter ended December 2012. This is weaker when compared to Rs175.92 crore it recorded during the December 2011 quarter.
The government’s tight control over sugar has hurt sugar companies and sugar mills. Despite gradual decontrol, problems continue to persist.
Out of the Rs161.20 crore of gross sales turnover for the quarter ended December 2012, roughly little over 82% came from sugar production alone, while cogeneration and distillery contributed to 7.45% and 9.32% respectively. Both these were down from the same period last year. Only sugar recorded net loss while the other two divisions recorded net profit. The company is into three segments: sugar, cogeneration and distillery.
Higher international sales boosted the company’s topline even as global economic environment remained challenging. It plans to invest in plants to further boost topline and bottomline
Jindal Saw, one of the leading pipe manufacturers, recorded net profit of Rs60 for the three months ended December 2012, which is 64.4% higher than what it recorded for the corresponding period a year ago at Rs36.5 crore.
Likewise, its sales turnover was higher, at Rs1,722 crore, for the December 2012 quarter, as against Rs1,093 crore for the same quarter last year. This meant sales turnover went up 67% on higher sales.
The company sold 2.59 lakh tonnes pipes, out of which overseas sales took 67% of the total pipes sold. This is respectable considering global economic environment was challenging. Domestic sales contributed to the remainder of the 2.59 lakh tonnes sold.
The company recorded as much as $500 million worth of orders during the quarter.
However, net debt remains a concern. At the end of January, its liabilities stood at Rs3,200 crore. The company remarked that it will raise long-term funds to meet capital expenditure. The company also added that it will invest in an iron o re and pellet plant to boost sales and profitability.
The company reported disappointing third quarter results for the 2013 fiscal as both net sales and net profit slumped while debt remains high
Ballarpur Industries (BILT), the Gautam Thappar-promoted entity, has reported a consolidated sales turnover of Rs 1,199.28 crore for the three month ended December 2012, down 1.06% when compared to Rs1212.10 crore it recorded for the same period a year ago.
The company also recorded net profit of Rs12.43 crore (after consideration of minority interests) for the quarter ended December 2012, down 8.60% when compared to Rs13.60 crore for the corresponding period last year.
The company’s long-term liabilities stood at Rs3,800.36 crore as at 31 December 2012, of which Rs3,549.81 crore consist of long-term debt. The company’s net worth stood at Rs3,724.05 crore.
Provision for taxation is net of Minumum Alternative Tax (MAT) entitlement credit of the company’s step-down subsidiary BILT Graphic Paper Product amounted to Rs7.73 crore for the December 2012 quarter when compared to Rs10.28 crore previously.
On 24th August 2012, the company and BILT Graphic Paper Products have approved transfer, by way of slump exchange basis, from 1 July 2012, the business undertakings of the company situated at Units Sewa and Ashti, who are engaged in the business of manufacture of copier paper, with business undertaking of Bilt Graphic would remain unchanged.