News posted by www.newsinfoline.com
New Delhi, May 8 (PTI) Triveni Engineering & Industries, engaged in sugar and mechanical equipment manufacturing, today reported 60 per cent fall in net profit at Rs 14.88 crore for the second quarter ended March 2010, mainly due to losses in sugar business. Net profit stood at Rs 37.77 crore in January-March quarter of 2009, Triveni said in a statement. The financial year of the firm is from October to September in line with the sugar crop year. The company''s net sales, however, rose by 30 per cent to Rs 593.85 crore in January-March 2010 against Rs 457.58 crore in the comparable period last year. Triveni posted a loss of Rs 14.67 crore in its sugar business during the quarter ended March this year. In the corresponding period last year, the company made a profit of Rs 67.28 crore in sugar business. However, the net profit of engineering businesses grew to Rs 49.36 crore from Rs 36.14 crore, in the review period. "Sugar businesses achieved growth of 22 per cent in turnover, while profitability was severely impacted on account of volatility of sugar prices, increased cost of production and higher levy obligation," the statement said. The company pointed out that fluctuation in sugar prices, which reached an all-time high in January 2010 and subsequently declined by about 40 per cent towards the end of the quarter, coupled with increased cost of production resulted in the sugar business recording a loss during the quarter under review. "The loss in sugar business was accentuated by the increased volume of levy quota from 10 per cent to 20 per cent with substantial gap between the levy sugar realisation and the cost of production," it said. Sugar mills have to contribute 20 per cent of their production (called levy sugar) to the government for supply to ration shops. In the half year ended March 2010, the company posted a net profit of Rs 87.82 crore, up 42 per cent over the same period last year. The company''s turnover for the period too grew by 31 per cent to Rs 1,081 crore in the period. The company also declared an interim dividend of 40 per cent. Its order book for the engineering business stood at Rs 854 crore.
News posted by www.newsinfoline.com
Click here to read more news from www.newsinfoline.com
Please follow our blogs
newsinfolinephotogallery
prabugallery
newsinfolinephotogallery1
photogallery1
No comments:
Post a Comment