Mumbai: Triveni Engineering & Industries Ltd posted a sharp drop in fourth-quarter net profit due to a decline in sugar prices and increased financing costs, the company said in a statement on Monday.
Net profit for the January-March quarter fell to Rs5.4 crore from Rs39.13 crore in the year-ago period. The company’s net sales in the quarter under review grew 7% at Rs364.48 crore from Rs341.92 crore in the same quarter last year, according to the company’s statement.
“For the medium term, we expect our engineering business to record strong growth while the sugar pricing scenario is expected to remain depressed due to forecast of surplus sugar,” chairman and managing director Dhruv Sawhney said in a statement.
He said the sudden dip in market prices had resulted in writing down of inventory, which in turn led to a steep decline in sugar profitability.
In January, JP Morgan in its report said it does not expect a significant rebound in sugar prices as exports are not viable, especially for mills based in north India.
For the 12-month period ended 31 March, the company reported a 31% dip in its net profit at Rs90.4 crore, compared with Rs131.5 crore in the last fiscal. The company said it has extended the current fiscal accounting period by another six months and the current year’s financial performance would be based on the performance in 18 months starting 1 April 2006.
PTI contributed to this story.