E.I.D. Parry (India) Ltd. standalone net profit for the second quarter ended September 2019 dipped 44.17% to ₹6.09 crore on muted sugar prices on account of higher sugar inventory and release order mechanism.
The revenue from continuing operations registered 26% growth to ₹442 crore.
“The performance of the company got affected in Q2 due to muted sugar prices on account of higher sugar inventory and release order mechanism,” said S. Suresh, managing director, E.I.D. Parry India.
“The sugar prices improved compared to the previous quarter due to floods in Karnataka and Maharashtra which affected the movement of sugar stocks to other States, thereby benefitting the company. During the quarter, sugarcane crushing volumes in Tamil Nadu units were better compared to previous year numbers,” he said.
Asserting that the Centre was taking various supportive measures to provide stability to the sugar prices, he also said Tamil Nadu Government took positive steps to increase the domestic sales of alcohol within the State by regulating import from other States. “These would augur well for the company in the coming quarters,” he added.
On Wednesday, the board decided to set up a greenfield 60 KLPD distillery at its Bagalkot unit in Karnataka at an estimated investment of ₹96 crore.
Besides, it was decided to set up a wholly owned subsidiary in Netherlands to facilitate the sales and marketing operations of the nutraceutical business in Europe.
The board also took note of the commissioning of phycocyanin (blue pigment extracted from spirulina) by its joint venture company Algavista Greentech Pvt. Ltd.
During the quarter, the company received a final dividend of ₹62 crore for FY19 from its subsidiary, Coromandel International Ltd.
