Bajaj Hindusthan today reported a net loss of Rs 14.9 crore for the quarter ended June 30, after five profitable quarters, hit by a sharp decline in sugar realisation and rising interest cost. The country’s largest sugar producer had posted a net profit of Rs 60 crore in the corresponding quarter last year.
Net sales increased over 86 per cent to Rs 715.6 crore on higher sales volume and increased power revenues.
Interest cost rose nearly 42 per cent to Rs 70.7 crore. The company’s shares closed 1.9 per cent higher at Rs 118.65 on the Bombay Stock Exchange.
The realisation of most sugar companies was affected during the quarter as prices of the sweetener have dropped nearly 40 per cent since mid-January. In Delhi, for instance, retail sugar prices have come down to Rs 30 a kg from Rs 48 a kg in January.
Sugar companies, especially those in Uttar Pradesh, paid high sugarcane prices during the crushing period early this year in anticipation of better returns. Sugar prices, however, took a beating due to government’s price control measures.
