E.I.D. Parry nets loss on surplus, output

E.I.D. Parry India Ltd., one of India’s largest manufacturers of sugar, has reported a net loss of ₹33 crore for the quarter ended June, compared with a profit of ₹226 crore a year earlier, due to carry-over surplus and higher sugar production.

Revenue from operations contracted to ₹450 crore (₹491 crore). The sugar division reported a loss of ₹52 crore (₹29 crore), while the farm inputs division posted a profit of ₹481 crore (₹424 crore), the company said in a statement.

The nutraceuticals business registered a 44% increase in revenue to ₹20 crore. This was mainly due to expenses incurred during the B2C launch in the U.S.

“During the quarter, sugar prices continued to be under severe pressure due to the carry-over surplus, higher sugar production in the country and release order mechanism. Industry is expecting an increase in MSP for sugar which is long overdue,” said S. Suresh, MD.

“The company’s operating performance in Q1 2021-22 was almost in line with the performance of the corresponding quarter of the previous year as sugar prices remained muted for the quarter. The debt reduction measures have helped in reduction of finance cost. We were able to export around 36,500 MT under the MAEQ scheme which also helped in better cash flow and profitability,” he said.

Source: Read Full Article