Avadh Sugar & Energy Ltd today reported a 27 per cent decline in net profit to Rs 43 crore for the third quarter ended December 2017.
The decline in net profit was despite higher income mainly due to sharp decline in sugar prices during the quarter, the company said.
Total income during the quarter was Rs 683 crore, up from Rs 470 crore registered in the same quarter of FY17.
"After a strong first half of FY18, sugar prices witnessed a sharp decline in Q3 FY18, continuing in Q4 FY18. In anticipation of a higher production during the season 2017-18 and 2018-19, there was a strong sense of pessimism in the market with a bearish trend," Avadh Sugar co-chairperson C S Nopany said.
"While, the fundamentals of the industry are still strong, it is expected that stability will return during Q1 of FY19. Avadh Sugar has focused on de-leveraging and reducing its finance cost apart from focusing on efficiency enhancement and de-bottlenecking," he said.
The Kolkata headquartered company has four sugar mills in Uttar Pradesh with a combined crushing capacity of 31,800 TCD (tonnes of cane per day).
The company also has two distilleries with a total capacity of 200 kilo litres per day and cogeneration facility and can produce 74 MW power.
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