Simbhaoli Sugars today said it made a net profit of Rs 43.7 crore in the third quarter ended December 31, 2009.
The company has in the last quarter same period reported a loss of Rs 11.8 crore.
The company's total income rose to Rs 335.6 crore in the latest quarter from Rs 124.5 crore in the corresponding quarter previous fiscal, Simbhaoli Sugars said in a filing to the Bombay Stock Exchange (BSE).
It said the company earned an interest of Rs 15.7 crore in the third quarter ended December 31, 2009, as against Rs 12.9 crore in the same period last fiscal.
Simbhaoli Sugars also informed the BSE that it plans to set-up a refinery at Kandla, Gujarat to process 1,000 tonnes of sugar a day, enhancing its overall refining capacity to 3,000 tonnes per day.
The estimated cost of the project is Rs 180 crore, which will be financed via loan and promoter's equity, it said.
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The company is already refining raw sugar at its sugar mills in Uttar Pradesh, but the Gujarat refinery will help cut logistics costs owing to its proximity to the port.
"After achieving the financial closing, the project will be implemented in 14 months...This refinery shall contribute towards meeting the likely sugar deficit in the country by processing raw sugar for domestic supply or re-export the white," the company's Chief Executive Officer Gurmit Singh Mann said.
Shares of Simbhaoli Sugars closed at Rs 82.15 on the BSE, up by 3.53 per cent.