Bumper production in SS 2018-19 kept sugar prices under check, says CS Nopany of Aadh Sugar &Energy
Kolkata/IBNS: Avadh Sugar & Energy Limited (ASEL), part of KK Birla Group of Sugar Companies, posted net loss of Rs 5.7 crore in the second quarter of FY 20 (ending September 30, 2019) compared to net loss of Rs 18.84 crore in the year ago quarter.
For the first half of FY2, the company reported net profit of Rs 20.61 crore compared to Rs 17.43 crore in the same period of the preious year.
C.S. Nopany, Co-Chairperson, Avadh Sugar & Energy Ltd said, "The heavy inventory carried by the industry due to the bumper production in SS 2018-19 kept sugar prices under check even though there was a working capital crunch faced by most mills. Delayed monsoons coupled with late heavy rainfall is expected to dampen production during the Season 2019-20 which should fade out the overhang of inventories due to the aggressive export policy. The Ethanol program continues to gather steam with more distilleries switching to the B Heavy route correcting the sugar imbalanced equation. We at Avadh Sugar and Energy Limited strongly believe that the overall changing market dynamics and our continued focus on efficiencies will have a positive impact on our performance and profitability.”
The company said that its Board of Directors has accorded consent to the capex programme i.e. expansion / installation of incineration boilers at its two distilleries and other efficiency improvement programmes at an estimated cost of Rs.173 crores to be funded by mix of debt and internal accruals.
The company deals in sugar, spirits and ethanol, cogeneration and other byproducts arising out of the manufacturing process of sugar or resultant of any activity related to sugar business.
The company has four sugar mills at Hargaon (District Sitapur, Uttar Pradesh), Seohara (District Bijnor, Uttar Pradesh), New India Sugar Mills, Hata (District Khushinagar, Uttar Pradesh), Rosa Sugar Works at Rosa (District Shahajahanpur, Uttar Pradesh) with a combined crushing capacity of 31,800 TCD.
The company has two distilleries at Hargaon and at Seohara with a total capacity of 200 KLPD.
The company ialso has Cogen facility and can generate 74 MW power.