Ludhiana, February 14, 2025 (News Team): Shree Renuka Sugars Limited - one of India’s largest sugar and Green Energy (ethanol and renewable power) producer and a subsidiary of Wilmar Sugar and Energy Pte Ltd (formerly known as Wilmar Sugar Holdings Pte Ltd), Singapore – has reported its financial performance for the quarter and nine months ended December 31, 2024.
Highlights of the results for the nine months are summarized below –
HIGHLIGHTS CONSOLIDATED AND STANDALONE – 9MFY25
At Standalone level for 9MFY25,
- Revenue up 2% at INR 78,395M vs INR 76,763M LY.
- EBITDA dragged down by 10% at INR 4,306M due to weak domestic and international sugar prices impacting inventory valuation.
- Total domestic sugar volumes were up by 30% at 322K MT.
- Refinery sold 1,080K MT vs LY at 1,026K MT up 5%, sales realisation was lower by 9%.
- Ethanol despatches suffered due to policy changes last season which impacted the production and sales in off-season in this fiscal year and lack of ethanol price revision . YTD despatches were at 9.4 crs litres vs 11.8 crs litres.
Atul Chaturvedi, Executive Chairman said, “The third quarter’s results reflect our stable growth in our operations despite the delay in the commencement of the crushing season due to weather condition, political elections and regulatory headwinds caused by lack of ethanol price revision, no change in minimum selling price (MSP) of sugar for the last six years. The Government recently permitted export of 10 lakh metric tonnes of domestic sugar which improved the domestic sugar prices, and its effect may be felt in following quarters. In spite, of all these challenges, Renuka is successfully progressing steadily.
Our consolidated income for 9MFY25 has increased by 4% over the previous year. The company posted a sturdy 9MFY25 performance driven by increased volumes in the refinery and milling divisions.”
Sunil Ranka, Chief Financial Officer said, “Renuka Consol had a sluggish margin in the third quarter resulting in negative ebitda growth of 10 % on 9M basis. Refinery exports were at full capacity. However, the domestic and international sugar prices were sharply down in the end of December which impacted the inventory valuation, realisations and consequently dragged the EBITDA performance.
The delayed start of sugar season is likely to be further curtailed due to early flowering in Maharashtra & Karnataka and plant diseases in UP potentially impacting yields. Despite the business challenges, company will continue to prioritise and pay farmer cane dues in time."
