EID Parry Q2 net up over 20x to Rs 131 cr on better margins, cost control

Revenue from operations for the quarter grew 20% to Rs 529 crore from Rs 440 crore a year ago

EID Parry (India) Limited, part of Murugappa Group, posted standalone profit after tax of RS 131 crore for the quarter ended September 30, as against Rs six crore in the corresponding quarter of previous year. Revenue from operations for the quarter ended September 30 grew 20 per cent to Rs 529 crore from Rs 440 crore a year ago. 

Earnings before depreciation, interest and taxes (EBITDA) and before exceptional items for the quarter ended was Rs 226 Crore as against Rs 51 crore in the corresponding quarter of previous year. During the quarter, the Company received from its subsidiary, Coromandel International Limited, a final dividend of Rs 206 Crore for the financial year 2019-20 as against Rs 62 Crore for the corresponding quarter of the previous year.

S Suresh, Managing Director said that the performance of the Company was better in Q2FY21 than in the corresponding quarter of previous year, due to better realisation and the cost reduction measures which continued from the Q1 2020-21. The Company was successful in meeting the export obligation for sugar season 2019-20 under MAEQ scheme. Sugar prices remained in the same levels of that of Q1 2020-21 and release order mechanism continued to be in place.

He added, the government had increased the FRP by Rs 100 per tonne for the sugar season 2020-21 without any increase in MSP of sugar. Though, the Government of India has announced increase in Ethanol procurement rates varying between Rs 1.90 and Rs.3.34 per litre depending on the grades of ethanol for the period December 2020 to November 2021, Industry is expecting an increase in MSP for Sugar for covering the increase in cane and other costs for healthy survival.

Availability of cane is expected to be better in Karnataka for sugar season 2020-21 as compared to previous sugar season while in Tamilnadu and Andhra it is expected to be in same lines as that of last year, he said.