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Triveni Engineering and Industries Ltd today reported a consolidated net loss of Rs 29.74 crore during the October-December quarter of the ongoing fiscal due to poor performance of sugar and allied businesses.
The Uttar Pradesh-based company had posted a net profit of Rs 5.16 crore in the same quarter last year.
The company's financial year begins from October.
However, the current fiscal year has been extended by six months to end on March 31, 2014, Triveni said in a statement.
"The overall performance during the current quarter has been disappointing. More so in sugar...," Triveni Engineering Chairman and Managing Director Dhruv M Sawhney said.
The issue of sugarcane pricing could not be resolved with the state government that kept cane prices for 2013-14 unchanged at last year's level. Also, the subsidies offered to the industry are "too little and ad-hoc" basis," he said.
Sawhney further said that central government incentives in the form of interest-free loan and export subsidy will provide only one-time respite.
"These must be accompanied with long-term measures to create an environment of equity and fair-play between the industry and farmers," he emphasised.
Total income increased to Rs 590.54 crore during the quarter under review, from Rs 533.44 crore in the same period last year.
The sugar business suffered a net loss of Rs 16.44 crore in the October-December quarter of this fiscal, as against a net profit of Rs 28.59 crore in the year-ago period.
Similarly, the engineering business reported a net loss of Rs 46 lakh in the reported quarter, compared with net profit of Rs 4.68 crore in the review period. The company's allied businesses also reported losses.
The company said that the performance of the engineering business reflects the business conditions in the aftermath of economic slowdown, while water business is affected by delays at the end of customers due to financial conditions.
Triveni is one of the largest integrated sugar producers in the country, with a sugarcane crushing capacity of 61,000 tonnes per day, 68 MW of power co-generation and 160 kilo litres per day of distillery production.
