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(30 May 2024, 16:25)

Shree Renuka Sugars declines on reporting dismal Q4 numbers

Shree Renuka Sugars slipped 2.41% to Rs 40.45 after the company reported consolidated net loss of Rs 111.7 crore in Q4 FY24 as compared with net profit of Rs 42.8 crore posted in Q4 FY23.


However, revenue from operation increased 48.86% year on year (YoY) to Rs 3,466.3 crore in the fourth quarter of financial year 2024.

The firm reported pre-tax loss of Rs 44.1 crore in the March 2024 quarter as compared with profit before tax of Rs 50.4 crore posted in same quarter last year.

During the quarter, EBITDA declined 6% YoY to Rs 281.7 crore as against Rs 298.3 crore in corresponding quarter previous fiscal.

On segmental front, revenue from sugar-milling was at Rs 841.8 crore (down 26.03% YoY), revenue from sugar–refinery stood at Rs 2,621.1 crore (up 131.73% YoY), distillery revenue was at Rs 114.1 crore (down 64.79% YoY), revenue from co-generation was at Rs 207.3 crore (up 7.3% YoY), trading revenue was at Rs 139.7 crore (up 1026.61% YoY) and revenue from Engineering stood at Rs 40.7 crore (down 69.07%) during the period under review.

On full year basis, the company reported net loss of Rs 627.2 crore posted in FY24 as against with net loss of Rs 196.7 crore posted in FY23. Revenue from operations stood at Rs 11,319 crore, registering a growth of 25.48% YoY.

Atul Chaturvedi, executive chairman said, “The company has displayed strong momentum, anchored by the Refinery division’s strong performance driven by firm international sugar prices and high export volumes. The domestic business was impacted due to lower production & sales volumes on account of drought induced low cane availability and restrictive policies on Ethanol.

Our flagship consumer pack brand Madhur continued to grow. Further, higher net realization especially in domestic sugar and refinery businesses resulted in stable Q4 performance. Our consolidated total income has increased by 25% over the previous year. The company’s resilience is driven by its robust business model.”

Sunil Ranka, chief financial officer said, “Shree Renuka Sugars has delivered a stable financial performance driven by the strong topline and consolidated EBITDA growth of 5%. Though our company’s EBITDA is comparable amongst the peers, the interest cost has escalated due to the upward movement in the borrowing rates along with additional working capital requirements for our refinery division thereby resulting in higher interest burden and impacting the profitability of the company.

Shree Renuka Sugars is one of the leading sugar manufacturers in India with a track record of over 25 years. Its operations are integrated, encompassing crushing of cane, refining of raw sugar, ethanol production and power generation.

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