Sugar manufacturer EID-Parry, part of the diversified conglomerate Murugappa Group, today reported net loss of Rs 133.81 crore for the quarter ended June 30.
The Chennai-based company had posted a net loss of Rs 26.61 crore during the corresponding period of the previous year.
Total income for the April-June 2015 quarter declined to Rs 481.36 crore from Rs 645.59 crore registered during the year ago period, the company said in a statement.
For the full financial year ended March 31, it had recorded a net profit of Rs 148.25 crore and total income of Rs 2,081.67 crore.
"This quarter (April-June 2015) has been the most challenging one. We have been taking many steps during the last many quarters to improve profitability. The average sales realisation of sugar in EIDP declined by 13 per cent in first quarter of 2015-16 as compared to previous quarter," EID-Parry Managing Director V Ramesh said.
"..We have devalued the sugar stocks to reflect the actual sales realisations of the first quarter (ending June 30, 2015) and early July. Consequently, the unprecedented progressive steep drop in sugar prices, due to surplus production in India, has completely eroded profitability and taken us into the red," he said.
"However without the government intervention with subsidy on exports and policy announcements linking cane price to sugar prices, we see difficult days ahead," he said.
