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.
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