 PRESS RELEASE |
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| The Oudh Sugar Mills Limited declares its Unaudited Financial Results for the 3rd quarter ended 31st March 2010. |
| Mumbai , April 30th 2010 |
Oudh Sugar Mills Ltd. (OSML), belonging to the renowned K.K. Birla Group, is amongst the most eminent and rapidly expanding companies in the Sugar Industry. OSML owns four 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 (iv) New India Sugar Mills – Hata with a crushing capacity of about 7000 TCD alongwith two distilleries i) at Hargaon with a capacity of producing 100 Kilo-Litre Per Day (KLPD) of Industrial Alcohol/Ethanol and (ii) at Narkatiaganj with a capacity of producing 60 KLPD of Industrial Alcohol/Ethanol. The Company also has co-generation power plants at Hargaon, Narkatiaganj and Hata with a total Co-generation capacity of 60 MW. OSML also possesses a fruit and vegetable processing unit at Bamrauli near Allahabad (U.P.)
The Directors of OSML at its Board Meeting held on 30th April, 2010 approved the following Unaudited Financial Results for the 3rd quarter ended 31st March 2010. |
| FINANCIALS AT A GLANCE |
| Rs. in lakhs |
| Particulars |
3rd quarter ended 31.03.2010 |
3rd quarter ended 31.03.2009 |
Year ended 30.06.2009
(Audited) |
| Turnover (Gross) |
14595.48 |
10856.73 |
58309.13 |
| Profit/(Loss) before Depreciation, and Tax (PBDT) |
(3449.38) |
(2304.55) |
5636.82 |
| Profit/(Loss) after Tax |
(2995.41) |
1082.86 |
1917.38 |
| EPS (Rs.) * Not annualized. |
(11.56) |
4.73 |
8.81 |
|
|
OSML reported a Loss after tax of Rs. 2995.41 on a gross turnover of Rs.14595.48 lacs for the quarter ended 31st March, 2010.
The health of the sugar industry was adversely affected during this quarter. Production was low as the availability of sugarcane was extremely limited during the entire season due to poor plantation and poor yield. Furthermore, soaring sugar and gur prices saw keen competition amongst sugar mills and alternate sweeteners resulting in soaring sugarcane prices. The free sale sugar market has been volatile throughout the year with prices reaching record levels. In response to high food inflation and mounting pressure from the opposition, the government took drastic steps to control the rise in sugar price. Firstly, the government increased levy sugar obligation from 10% to 20% for distribution through PDS which the industry has contributed at a staggering loss. Secondly, stock limitations were imposed on consumers for domestic sugar thereby curbing consumption. Thirdly, white sugar imports were allowed at zero duty leading to abundant availability of sugar in the country. Finally, the monthly release system was converted to a weekly system. All these measures have seen a collapse in the domestic sugar prices leading to cash losses for the sugar industry.
The problem has been further compounded due to non-fixation of Levy Sugar prices by the Government of India and increase in Levy obligation. Sales and inventory of Levy Sugar have been accounted for on the basis of provisional prices fixed for the Sugar Season 2004-05. Due to non fixation of levy prices and increase in levy obligation from 10% to 20% against the production of Sugar during season 2009-10 , the Company has accounted for loss of Rs. 5610.72 lacs during the nine months period ended 31st March, 2010.
The Company’s shares are listed at NSE and BSE and are actively traded |
For further information please contact:
Ms. Swati Jalan / Ms. Lucy Dass
Communications 2.0
Ph- 9830111376/ 9748552374 |
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