 PRESS RELEASE |
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| The Oudh Sugar Mills Limited declares its 1st Quarter Financial Results for the quarter ended 30th September 2007. |
New Delhi, 29th October, 2007: The Oudh Sugar Mills Ltd. (OSML), belonging to the renowned K.K. Birla Group, is amongst the most efficient and rapidly expanding companies in the Sugar Industry. OSML owns three sugar units at (i) Hargaon Sugar Mills, Hargaon, Dist. Sitapur (U.P.) with a crushing capacity of about 10,000 tonnes crushed per day (TCD) (ii) New Swadeshi Sugar Mills, Narkatiaganj, Dist. West Champaran (Bihar) with a crushing capacity of about 7,500 TCD and (iii) Rosa Sugar Works, Rosa, Dist. Shahjahanpur, (U.P.) with a crushing capacity of about 4,200 TCD alongwith two distilleries i) at Hargaon with a capacity of producing 45 Kilo-Litre Per Day (KLPD) of Industrial Alcohol/Ethanol and (ii) at Narkatiaganj with a capacity of producing 30 KLPD of Industrial Alcohol/Ethanol. OSML also possesses a fruit and vegetable canning unit at Bamrauli near Allahabad (U.P.)
The Board of Directors of OSML at its meeting held on 29th October, 2007 took on record the 1st Quarterly Financial Results for the period ended 30th September, 2007. |
| FINANCIALS AT A GLANCE |
| Rs. in lakhs |
| Particulars |
1st quarter ended 30.09.2007 |
1st quarter ended 30.09.2006 |
Year ended 30.06.2007
(Audited) |
| Turnover |
7792.47 |
11550.81 |
46812.06 |
| Profit/(Loss) before Depreciation, and Tax (PBDT) |
(1712.40) |
470.87 |
(1914.43) |
| Profit/(Loss) after Tax |
(1491.86) |
17.24 |
(2689.55) |
| EPS (Rs.) |
(8.21) |
0.09 |
(14.80) |
|
|
OSML reported a decrease in turnover by 32.54% at Rs. 7792.47 lakh and a net loss of Rs. 1491.86 lakh for the quarter ended 30th September, 2007 as against a turnover of Rs. 11550.81 lakh and a net profit of Rs. 17.24 lakh during the quarter ended 30th September, 2006.
The sugar industry is going through a crisis phase primarily because of two related factors. Firstly, a record bumper production that far outstripped the demand for sugar saw a steep fall in prices. Secondly, the State Governments fixed high and uneconomic prices of sugarcane. Both these factors have resulted in huge losses for the sugar industry.
The dip in profitability for this quarter can be attributed to the above factors along with an uncondusive business environment.
However, the Company’s strategic initiative of diversifying into the production of co-products such as ethanol and power will provide stability to its operations.
Capital Projects:
The Company successfully completed the second phase of expansion of the sugar factory at Hargaon from 7,500 tcd to 10,000 tcd with a Co-generation plant of 8 MW at a cost of about of Rs.116 crores. The capacity of sugar factory at Narkatiaganj was also increased from 6500 tcd to 7500 tcd along with a Co-generation plant of 5 MW at an estimated cost of Rs.37 crore. The capacity enhancement of Hargaon Distillery to 100 klpd at an estimated cost of Rs. 100 crores is progressing as per schedule. The capacity of Narkatiaganj Distillery is being increased from 30 klpd to 60 klpd. The Company’s plan to set up a Greenfield project at Hata in Uttar Pradesh at an approximate cost of Rs.336 crores with a crushing capacity of 7000 tcd with a sugar refinery and Co-Generation plant with a capacity of 35 MW is progressing satisfactorily.
The Company’s shares are listed at the NSE and BSE and are actively traded having a 52 week high of Rs. 124.95 and Rs. 123.90, respectively. |
For further information please contact:
Communications 2.0
Ms. Swati Jalan/ Ms. Sayantani Banerjee
Ph- 9830111376 |
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