Chennai: EID Parry (India) Ltd, a Murugappa Group company, has reported a net loss of Rs25.41 crore in the first quarter ended June, against a net profit of Rs108.3 crore for the same quarter last year, owing to low sugar prices in domestic and international markets.
The numbers are not comparable as in the April-June 2006 period, EID had booked a profit of Rs118 crore from sale of shares in Parryware Glamourooms Pvt. Ltd. “The present prices of sugar are now below manufacturing cost since cane prices were fixed based on high prices of sugar ruling earlier”, said EID Parry chairman A. Vellayan.
Net sales during the April- June period fell by 57% to Rs74 crore, as against Rs169 crore in the corresponding period last year. This is due to 25% fall in sugar realization per tonne to Rs13,712.
Earnings per share in the first quarter ended June was a negative Rs2.85, as against Rs12.13 crore in the same period last year.
For the full year, D. Kumaraswamy, chief financial officer of EID Parry, said, “Despite poor sugar price prevailing in the market, we hope to make a profit for the year due to dividend and non-sugar income”.
EID Parry owns Coromandel Fertilisers Ltd, which recently announced merger with another Murugappa company, Godavari Fertilisers and Chemicals Ltd.
Thus, the consolidated income from operations has fallen only by 6% to Rs543 crore as against Rs579 crore in first quarter of 2006-07.
The shares of EID Parry in the Bombay Stock Exchange closed at Rs131.7 per share, a fall of 1.27% from Wednesday’s closing price.