Oudh Sugar Mills today reported a net profit of 18.63 crore for the quarter ended September as against a net loss of Rs 19.15 crore in the year-ago period.
Net sales rose by 32 percent to Rs 330.29 crore for the second quarter of this fiscal from Rs 250.76 crore in the corresponding period of the previous year, Kolkata-based company said in a filing to BSE.
Oudh Sugar Mills is a part of KK Birla group.
Commenting on the result, Oudh Sugar Mills Chairman C S Nopany said: "Globally, the sugar season 2015-16 has witnessed a fall in sugar production after continuous 5 years of surplus production, thereby correcting the imbalance in the demand and supply position. The fall in production has reduced inventories to a balanced level." "After five years of surplus sugar production in India coupled with aggressive sugar export strategy, domestic sugar production in sugar season 2015-2016 was marginally lower vis-a-vis domestic consumption and has consequently resulted in an improvement in domestic sugar prices." During the period under review, the industry saw a normalcy in sugar prices both domestically and globally, he added.
The company has undertaken a composite scheme of arrangements for its business realignment which is already approved by its shareholders as well as secured creditors and is pending for regulatory approvals, Nopany said.
Oudh Sugar Mills has combined sugar production capacity of 28,700 tonne crushed per day (TCD), alongwith distilleries capacity of producing 160 Kilo-Litres per day (KLPD) of industrial alcohol/ethanol and a total cogeneration capacity of 60 Mega Watts (MW). It also has a food processing unit.
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