Gayatri Sugars hopes to crush 4.25 lakh tonnes of sugarcane

Gayatri Sugars Limited has informed that the company is expecting a better sugar season during 2005-06 on account of good monsoon and increase in the sugarcane growing area.

The company is optimistic of crushing at least 4.25 lakh tonnes of sugarcane with a recovery rate of 10.5 per cent, a growth of about 30 per cent over that of the previous season (2004-05).

The company posted a sales income of Rs 76 crore and a net profit of Rs 5.21 crore for the year ended March 31, 2005.

For the half year ended September 30, 2005, it achieved a sales income of Rs 44 crore and a net profit of Rs 75 lakh as against sales of Rs 28 crore and loss of Rs 4.05 crore for the corresponding period of the previous year. The major part of the sales is expected in the second half of the year.

Meanwhile, Gayatri Sugar's 50 klpd (kilo litres per day) distillery project in Nizamabad district is scheduled to be implemented in the current year 2005-06.

The estimated cost of the project is Rs 26 crore, to be funded by Rs 17 crore of term loans and Rs 9 crore of internal accruals.

Commercial operations will commence in November 2006. On implementation of the distillery project, the estimated increase in topline and bottomline is about Rs 25 crore and Rs 4.5 crore respectively.