Dwarikesh net dips 26%

BS 200 SCORECARD

Dwarikesh Sugar's net profit for the quarter ended March has dipped 26.18 per cent to Rs 8.57 crore from Rs 11.61 crore in the corresponding period last year. A company executive attributed it to increased depreciation and deferred taxes involving a new project.

Total sales in the quarter, however, rose 26.92 per cent to Rs 51.29 crore and EBIDTA registered growth of 11.63 per cent to Rs19.44 crore over the corresponding period last year. Rise in sales has been driven by better realisation and increase in total volume.

G R Morarka, CMD, said, "Though the impact on the gross revenues of the new plant at Dwarikesh Puram has been marginal during the current year, it is expected to substantially contribute to the bottom line in the coming years."

The company has plans to set up a new greenfield project of 7,500 tcd, to be commissioned by October 2007, for which land has been finalised.

Dwarikesh also plans to set up 24 mw each co-generation facilities at its Dwarikesh Puram plant and the proposed new plant at a cost of Rs 300 crore.

Morarka added, "The company is exploring various avenues for raising funds for these projects including GDR/FCCB/external borrowings and internal accruals."