Simbhaoli Sugars reported net loss of Rs.16.98 crore in the October-December quarter compared with a net profit of Rs 43.78 crore in the same period a year ago.
In an interview with CNBC-TV18, Sanjay Tapriya, CFO of Simbhaoli Sugars Mills said he is confident that the company would do well ahead. "We are anticipating that this least gap situation, between the cost of production and the selling price, will reduce significantly." He expects to see a turnaround in coming quarters. Below is the verbatim transcript of Tapriya's interview with Latha Venkatesh and Ekta Batra of CNBC-TV18. Also watch the accompanying video. Q: The October-December quarter has not been very good. You have reported, sales down 6.2%, a net loss of about Rs 17 crore versus profit of Rs 43 crore year ago same quarter. Would all this be a attributable largely to that forex loss that you all incurred or is there even minus that forex loss you are in an operating loss level? A: Inspite of the slowdown in the sugar business we have been largely able to maintain the turnover. We have been slightly down by about 6% as compared to the previous quarter. However, we are still hovering at over Rs 355 crore. On the negative side, the sugar realisations are quite close to the cost of production and the margins have not been built up inspite of Simbhaoli pursuing a lot of exports of sugar. Thirdly, all the off-crop period expenses have been straightaway charged to the profit and loss account. This was because we operated only for 25 days in this quarter as against about 65 days of off-season expenditures so, they affected the sugar results. We have been seeing improvements in other two businesses, alcohol and power. Alcohol has been turned from negative to positive business. The power side earnings have improved inspite of a lower production because generation of power is just fully dependent on the number of days of the crushing operations. Yes, forex losses are the important tool. About Rs 5 crore 50 lakh has been lost on the forex side. I take these as one of the expenditures. Right now we donDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
