Shree Renuka Sugars Faces Q4 Net Loss Amid Rising Costs and Drought

Shree Renuka Sugars Ltd reported a consolidated net loss of Rs 111.7 crore for the fourth quarter ending March 31, 2024, compared to a profit of Rs 44.6 crore in the same period last year. The loss was driven by higher expenses, including deferred tax and cane costs.


PTI | New Delhi | Updated: 30-05-2024 14:15 IST | Created: 30-05-2024 14:15 IST
Shree Renuka Sugars Faces Q4 Net Loss Amid Rising Costs and Drought
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Shree Renuka Sugars Ltd posted a consolidated net loss of Rs 111.7 crore for the fourth quarter ended March 31, compared with a profit of Rs 44.6 crore a year earlier, due to higher expenses.

The sugar producer's total income rose to Rs 3,476.3 crore in the January-March period from Rs 2,370 crore a year ago.

However, total expenses increased to Rs 3,520.4 crore from Rs 2,319.6 crore in the same period last year, the company said in a regulatory filing on Thursday.

Shree Renuka incurred a deferred tax expense of Rs 65.1 crore and a cane expense of Rs 25.1 crore during the quarter.

For the full fiscal year 2023-24, the company's total income increased to Rs 11,367.4 crore from Rs 9,106.5 crore a year earlier.

Its net loss widened to Rs 627.2 crore from Rs 196.7 crore in 2022-23.

Shree Renuka Executive Chairman Atul Chaturvedi said the company has displayed strong momentum, anchored by the refinery division's strong performance driven by firm international sugar prices and high export volumes.

However, ''The domestic business was impacted due to lower production & sales volumes on account of drought-induced low cane availability and restrictive policies on ethanol,'' he said.

''Though our company's EBITDA is comparable amongst the peers, the interest cost has escalated due to the upward movement in the borrowing rates along with additional working capital requirements for our refinery division, thereby resulting in a higher interest burden and impacting the profitability of the company,'' said the company's Chief Financial Officer Sunil Ranka.

As of March 31, 2024, Shree Renuka's current liabilities exceeded current assets of Rs 2,562.8 crore and the group had a negative net worth of Rs 1,437.4 crore.

However, the management believes it will meet all financial obligations on time, the filing said.

Shree Renuka Sugars is one of India's largest sugar, green energy, renewable power producers and sugar refiners. LUX DR

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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