Bajaj Hindusthan net up 36% to Rs 190.8cr

Bajaj Hindusthan Ltd. (BHL), India's Number One sugar Company, has achieved a 36% growth in net profit during the financial year ended September 30, 2006. The Company's net profit for the year was Rs. 190.8 crore, as against Rs. 140.4 crore during the previous year 2004-05.

Total revenue increased 74% to Rs. 1,486.8 crore, from Rs. 854.8 crore in the previous year. Profit before interest, depreciation and tax (EBIDTA) recorded a 60% rise to Rs. 350.4 crore, from Rs. 218.8 crore in the previous year. BHL's sugar sales volumes increased by 57% during the year to touch 720,798 tonnes. The Company's industrial alcohol volumes grew by 160% to 67,480 kilolitres.

The Board of Directors of the Company, which met in Mumbai on December 28, 2006, approved the results. The Board recommended a dividend of 60%.

Speaking on the occasion, Mr. Shishir Bajaj, Chairman & Managing Director, Bajaj Hindusthan Ltd., said, "In our Platinum year, we have posted the highest ever profits. However, the results could have been much better but for higher cane prices, lower recoveries due to earlier start of the crushing season and the Government i mposed ban on exports

which had a deleterious impact on domestic sugar realizations."

"Our expansions have enabled us achieve benefits of scale and has had a positive impact on our costs. Without this benefit the performance would have been affected even more."

Mr. Bajaj added, "The ambitious expansion plans of our subsidiary, Bajaj Hindusthan Sugar & Industries Ltd. (BHSIL) , is progressing as per schedule and we expect to start crushing at 40,000 TCD in the next crushing season. Its distillery of 160,000 litres per day will become operational by March 2007.

In the current season FY2006-07, BHL will crush at 89,000 TCD and BHSIL at 6,000 TCD. BHL's two new distilleries each of 160,000 litres per day are expected to be operational by March 2007. "The re-introduction of the 5% ethanol blending programme is very welcome and with long term contracts, ethanol revenues will be more stable and mitigate to some

extent the cyclicality of the sugar business" Besides being a cheaper fuel, ethanol also provides an environmentally cleaner renewable fuel."

"Our MDF and particle board foray under the aegis of our 100% subsidiary Bajaj Eco-tec Products Limited, is also progressing well and we expect to commence operations by November 2007. BHL would also commence

supplying power to the grid in the current year. Power revenues along with the attendant carbon credits will form another non-cyclical revenue stream for the company."