Shree Renuka net at Rs 17 cr

CORPORATE SCORECARD

Shree Renuka Sugars has posted a net profit of Rs 17.04 crore for the second-quarter of 2005-06. The company follows an Oct-Sept financial year. Net sales for the quarter stood at Rs 146.4 crore.

Gross profit stood at Rs 30.4 crore at the end of the quarter, while profit before tax was Rs 28 crore. EPS was Rs 7.16 crore. Comparable figures for the year-ago quarter were not available.

Shree Renuka Sugars said on Wednesday that it will acquire assets of a 23 mw power plant from Sarita Sugars for Rs 39.72 crore. The company would relocate the assets of the plant to its Karnataka unit and Haldia Refinery, Shri Renuka informed the Bombay Stock Exchange.

The board, in its meeting held today, also approved an increase in the limit of investment by Foreign Financial Institutions in the company to up to 49 per cent.

The borrowing power of the company has also been increased to Rs 1,200 crore, it said. The board has also approved a proposal for setting up a cogeneration capacity of 15 MW in Karnataka with a capital outlay of Rs 30 crore.

It also approved addition of 60 and 150 KLPD distillery capacities in Maharashtra and Karnataka respectively for Rs 50 crore. The two units are scheduled to commence operations in December 2006 and March 2007 respectively.

"The addition to the existing and already announced capacity of distillery would be 210 KLPD and cogeneration would be 38 MW, taking the company's total capacity in distillery by next season to 450 KPLD and cogeneration capacity to 103.5 MW," the company said.

It has also sanctioned raising of loans through external commercial borrowings to fund its capital expenditure (CAPEX) plans.