 PRESS RELEASE |
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| The Oudh Sugar Mills Limited declares its 2nd Quarter Financial Results. |
| Mumbai, January 30, 2007. |
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 the 30th January 2007 took on record the Unaudited Financial Results (Provisional) for the 2nd quarter ended 31st December, 2006. |
| Rs. in lakhs |
| Particulars |
2nd quarter ended 31.12.2006 |
2nd quarter ended 31.12.2005 |
Year ended 30.06.2006 |
| Turnover |
11,110.98 |
13,329.32 |
52,864.92 |
| Profit before Depreciation and Tax (PBDT) |
751.13 |
2,308.87 |
8,612.87 |
| Net Profit |
167.98 |
1,272.11 |
4,536.51 |
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|
OSML reported a PBDT of Rs.751.13 lacs and a PAT of Rs.167.98 lacs on a turnover of Rs.11,110.98 lacs for the quarter ended 31st December, 2006.
The margins for the sugar industry have been under pressure during the quarter under review. A sharp increase in cane prices coupled with an unjustified ban on sugar exports by the Government of India resulted in low sugar prices and erosion in profitability. However, the Government of India has now decided to lift the export ban which has had a positive impact on the market sentiment. It is now expected that sugar prices will rise to more reasonable levels as the surplus sugar in the system is likely to move out of the country. The company’s policy of concentrating on co-products such as ethanol and cogeneration of power will give stability to its profitability.
The expansion of Hargaon Sugar Mills, Hargaon (U.P.) from 7500 TCD to 10000 TCD with a co-generation power plant of 8 MW at a capital outlay of about Rs.116 crores has been completed & is currently operational.
The sugarcane crushing capacity of New Swadeshi Sugar Mills, Narkatiaganj (Bihar) has been increased to 7500 TCD with a co-generation power plant of 5 MW at a cost Rs. 37 crores.
The Company is also increasing the capacity of Hargaon Distillery, Hargaon, Dist. Sitapur, Uttar Pradesh to 100 KLPD at an estimated cost of Rs.100 crores approximately.
Further, the Company is in the process of setting up a Greenfield sugar unit at Hata, Gorakhpur (U.P.) at an estimated cost of Rs.336 crores with a capacity of 7000 TCD and co-generation power plant of 17 MW. The plant will be operational during Sugar Season 2007 - 2008.
After completion of all the expansion programmes, The Oudh Sugar Mills Limited will have a consolidated crushing capacity of 28,700 TCD, captive power generation of 30 MW and two distilleries with a combined capacity of 130 KLPD.
The Company’s shares are listed at the NSE and BSE and are actively traded, having a 52 week high of Rs. 296.20. |
For further information please contact:
Mr. Anil Malhotra, Aadi Media
09810154657 / 011-26288197 |
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