EID Parry (India) declined 3.16% to Rs 333.50 after the company's consolidated net profit fell 6.1% to Rs 245.37 crore on a 15.2% increase in net sales at Rs 4701.19 crore in Q3 December 2020 over Q3 December 2019.
Profit before tax (PBT) slipped 2% to Rs 330.04 crore in Q3 December 2020 as against Rs 336.91 crore in Q3 December 2019. Current tax expenses for the quarter soared 19% to Rs 109.57 crore as against Rs 92.11 crore in Q3 December 2019. The Q3 result was declared post trading hours yesterday, 8 February 2021.
Earnings before depreciation, interest and taxes (EBITDA) and before exceptional item for the quarter ended 31 December 2020 stood at Rs 559 crore, registering an increase of 10% on comparison to the corresponding quarter of previous year of Rs 509 crore.
In sugar division, the consolidated sugar operations reported a profit before interest and tax of Rs 2 crore in Q3 FY21 as against a profit of Rs 12 crore for the quarter recorded in Q3 FY20. In farms input division, the consolidated farm input operations reported a profit before interest and tax of Rs 498 crore in Q3 FY21 over a profit of Rs 436 crore registered in Q3 FY20. In the nutraceuticals division, the consolidated nutraceuticals division registered a profit before interest and tax of Rs 3 crore as compared to a profit of Rs 6 crore recorded in Q3 FY20.
On a standalone basis, the revenue from operations for the quarter ended 31st December 2020 was Rs 439 crore in comparison to the corresponding quarter of previous year of Rs 437 crore. Profit after tax for the quarter was Rs 339 crore as against a loss of Rs 20 crore in corresponding quarter of previous year. EBITDA before exceptional items for the quarter was Rs 31 crore in comparison to the corresponding quarter of previous year of Rs 27 crore.
S Suresh, the managing director of E.I.D. Parry (India), said: "Performance of the company during the quarter was impacted due to increase in Fair & Remunerative Price (FRP) without corresponding increase in the Minimum Selling Price (MSP) of sugar and also due to the reduced sugar selling prices. The selling prices were under severe pressure due to the carryover surplus and the higher sugar production in the country during the quarter. Further, the much-expected export programme also did not come through during the quarter. Cane crush is expected to be marginally better than the last sugar year in Karnataka, while it is expected to be almost similar to the last year number for Tamilnadu and Andhra Pradesh regions."
"The company continues to focus on sweating the assets along with cost and cash management. The board of directors have approved the closure of Pettavaithalai unit which had not been in operations for the past few years. The company proposes to transfer the assets of the units to its other units/dispose of other assets as it deemed appropriate. Consequently, the company has charged Rs 83.32 crore to the profit and loss account (representing Rs 65.53 crore of impairment charges and Rs 17.79 crore towards dismantling/transportation expenses) for the quarter and nine months ended 31 December 2020. Also, the company has impaired goodwill of Rs 14.52 crore relating to Ramdurg factory based on evaluation of the recoverability, being a leased plant. During the quarter the company had further sold 2% stake in its subsidiary, Coromandel lnternational Limited as a part of its debt reduction plan. Standalone Nutraceuticals division registered a strong profit growth of 296% at Rs 2 crore as against loss of Rs 1 crore in corresponding quarter of previous year on account of increased sales to US and Europe," he added.
E.I.D Parry (India) is engaged in the manufacturing and marketing of sugar, bio pesticides and nutraceuticals.
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