Dalmia Bharat Sugar reports 11 pc rise in Q2 profit; to invest over Rs 400 cr in expansion

On Monday, it was erroneously reported that total income had declined. The board has approved capital expenditure (capex) plan of Rs 412 crore for brownfield expansion and strategic diversion of sugar into ethanol.

Dalmia Bharat Sugar and Industries has reported a 11 per cent increase in its consolidated net profit at Rs 55.55 crore for the quarter ended September and announced investment of over Rs 400 crore on expansion. Its net profit stood at Rs 50.13 crore in the year-ago period.

Total income rose to Rs 730.96 crore in the second quarter of this fiscal from Rs 486.03 crore in the corresponding period of the previous year. On Monday, it was erroneously reported that total income had declined.

The board has approved capital expenditure (capex) plan of Rs 412 crore for brownfield expansion and strategic diversion of sugar into ethanol. In a regulatory filing on Monday, Dalmia Bharat Sugar informed that the board has given in-principal approval to the expansion of sugar and distillery capacities. "The government of India in the recent past has given a lot of impetus on ethanol blending programme and accordingly the company plans to increase its distillery capacity to meet the increasing ethanol demand," the filing said. The overall cane crushing capacity is planned to be increased approximately by 5,000 TCD (tonnes crushed per day) and distillery production is planned to be increased around 15 crore litres from currently 8 crore litres over a period of next two-three years.

"The capital expenditure for the abovementioned expansion is estimated to be Rs 412 crore which will be financed partly by way of internal accruals and partly through debt," Dalmia Bharat Sugar said. The company has three sugar factories located in Uttar Pradesh (Ramgarh, Jawaharpur and Nigohi) and in Maharashtra (Kolhapur and Sangli). The company has aggregate sugarcane crushing capacity of 34,000 TCD, distillery and co-generation operation of 240 kilo litres per day and 119 MW, respectively.

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