EID Parry (India) Ltd, one of the largest manufacturers of sugar, reported an almost 22-fold rise in its standalone net profit to ₹131 crore on better realisation and cost-reduction measures.
Revenue from operations grew 20% to ₹529 crore, the company said.
The nutraceuticals division registered profit growth of 190% to ₹4 crore (₹1 crore), on account of increased sales to U.S. and Europe.
“Though, the Centre has announced an increase in ethanol procurement rates depending on the grades of ethanol for the period December 2020 to November 2021, the industry is expecting an increase in minimum support price for sugar, for covering the increase in cane and other costs for healthy survival,” said S. Suresh, MD.
While stating that the Murugappa group company was successful in meeting the export obligation for sugar season 2019-20 under maximum admissible export quantity scheme, he said sugar prices by and large remained at the same levels of that of Q1 2020-21 and release order mechanism continued to be in place.”
The government has increased the fair and remunerative price by Rs.100 per MT for the sugar season 2020-21 without any increase in minimum support price (MSP) of sugar, he said.
According to him, availability of cane is expected to be better in Karnataka for sugar season 2020-21 against previous sugar season, while in Tamil Nadu and Andhra it is expected to be in same lines as that of last year.
