Mumbai, April, 29, 2006:- Dwarikesh Sugar Industries Limited,an integrated sugar conglomerate, today announced the second quarter results of FY2006. Sales registered a growth of 26.92% at Rs.51.29 crores and EBIDTA registered a growth of 11.63% at Rs.19.44 crores over the corresponding period last year. The net profit for the quarter has been marginally lower at Rs.8.57 crores for the quarter on account of the increased impact of depreciation and deferred taxes of the new project. The rise in sales has been driven by better realisation and increase in volumes.
Explaining the Q2 performance and the future plans, Mr. G R Morarka, CMD, Dwarikesh Sugar, said "Our second plant at Dwarikesh Puram(DP) was commissioned on 1st January, 2006 with an installed capacity of 7500 TCD. Though the impact on the gross revenues of the new plant has been marginal during the current year, it is expected to substantially contribute to the bottom line in the coming years".
He further added "We are convinced of the continuing buoyancy in the sugar prices, keeping in mind the global shortage of sugar and the low carry over stock situation in the country. Adverse weather conditions in some parts of the world coupled with diversion of cane for production of ethanol in Brazil have further contributed to reducing the availability of cane sugar. The bye-products of sugar industry, ethanol and power, promise great potential in our country due to the sky rocketing crude oil prices and severe shortage of power in most parts of the states. Dwarikesh Sugar has taken adequate steps to ensure that the Company reaps full benefits in the current scenario".
The Company has planned a new green field project of 7500 TCD to be commissioned by October'07 for which land has also been finalised and ordering for machineries started. Dwarikesh has also planned to set up 24MW each co-generation facility at its DP plant and the proposed new plant to be commissioned by October, 2007. These are expected to be set up at a cost of Rs.300 crores. The required Power Purchase Agreement for the DP plant has been signed and for the second one the same would be executed shortly. Dwarikesh has already signed an agreement in starting the processing of carbon credits for its 8 MW co-generation plant at Dwarikesh Nagar plant and would be undertaking similar exercise for both the new co-gen facilities to be set up.
On funding Mr. Morarka added "the Company is exploring various avenues for raising funds for these projects including GDR/FCCB/External borrowings and internal accruals".
The cane crushing in the coming season is expected to be substantially higher on account of increased area under cane, leading to higher volumes and consequently higher profits.
About Dwarikesh Sugar Industries
Dwarikesh Sugar Industries Ltd made a successful IPO in November, 2004 raising Rs. 32.50 crores. The company's IPO of 50 lacs shares at a premium of Rs 55 per share (Face value Rs. 10) was oversubscribed 23 times. Prior to the commencement of the Greenfield project of 7500 TCD and 9 MW co-generation power, the company had a crushing capacity of 6,500 TCD, 17 MW Co-generation power unit (expanded from 9 MW) and a distillery with capacity of 30,000 Litres per day. The Company exports around 8 MW to UPPCL under a long term Power Purchase Agreement. With recent issue of 3,000,000 GDR at USD 4 each, the company is now ready to expand its sugar production capacities further.
For further information contact:
J.R.Banka
CGM (Corp.Affairs)
Dwarikesh Sugar Industries Ltd.
Tele: 22042945
Email: jkbanka@dwarikesh.com
Rajiv Naidu/Mili Lalwani
Adfactors PR, Mumbai
Tele: 22813565
Email: rajiv@adfactorspr.com
Source: AdFactors
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