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Sugar manufacturer EID Parry, part of the diversified conglomerate Murugappa Group, today reported a dip in the standalone net profit for the fourth quarter ending March 31, 2018 at Rs 122.44 crore. The city-based company had clocked standalone net profit at Rs 164.33 crore in the year ago period.
Managing Director S Suresh said the companys performance has been impacted due to depressed sugar prices and higher cane prices.
For the financial year ending March 31, 2018, standalone profit slumped to Rs 101.01 crore from Rs 283.61 crore in the year ago period.
Standalone total income for the January-March 31, 2018 quarter stood at Rs 495.16 crore compared to Rs 755.60 crore in the corresponding period last year.
For the full year ending March 31, 2018, standalone total income slipped to Rs 2,135.67 crore from Rs 2,502.82 crore.
“In Q4, 2017, sales was impacted due to the stock limit imposed by the Government of India for February and March 2018”, Suresh said. The company has made an one-time settlement of additional cane price of Rs 87 crore for “sugar years 2013-14 to 2016-17” with farmers registered with the firm, he said.
For the fourth quarter ending March 31, 2018, consolidated sugar operations reported an operating profit of Rs 14 crore as against Rs 118 crore registered during corresponding quarter of previous year.
Consolidated farm inputs operations reported operating profit of Rs 175 crore compared to Rs 267 crore.
Bio-products division reported an operating profit of Rs 16 crore for the quarter ending March 31, 2018 compared to Rs 15 crore registered in the year ago period.
Last month, the company said, it hived off the bio-pesticides division and the investments in Parry Amercia to subsidiary company Coromandel International Ltd, for a consideration of Rs 338.01 crore.
The Board of Directors at its meeting held today have recommended a final dividend of Rs three per equity share (300 per cent) on face value of Re one each.
On the outlook for the current financial year, Suresh said “FY2018-19 looks to be challenging with depressed sugar prices and continuing drought conditions in Tamil Nadu and expected higher sugar production in the country for sugar season 2018-19.”