Dwarikesh announces Q3 results; net profit at 7.24 cr.

Mumbai, July 15 2005 : At the board meeting held on 15th July, 2005 in Mumbai, the Board of Directors of Dwarikesh Sugar Industries Ltd took on record the results for the third quarter ended 30th June, 2005.

The Company's net profit for the quarter stands at Rs.7.24 crore . The company's net profit for the nine months ended 30th June, 2005 stands at Rs. 24.52 crore an increase of 157% as compared to Rs. 9.56 Crore for the nine months ended 30th June, 2004. Higher price realisation have resulted in a significant jump in the profit for the 9 months ended June, 2005 as compared to the same period last year.

Commenting on the outstanding jump in performance in the last nine months, Mr. G R Morarka, Chairman and Managing Director of Dwarikesh Sugar said " It is a result of our efforts to consistently build on the efficiency achieved at all level of production. These are just milestones towards achieving the larger objectives. We at Dwarikesh strive towards the development of the farmers' community and believe that all sugar companies should realise their responsibility towards the same. This in turn will contribute to the growth of rural economy and consequently make the sugar industry and Indian economy stronger."

FUTURE PROSPECTS

The prospects of the sugar industry appear bright for at least the next two years in view of the depleted stock positions. The international rise in the prices of raw and white sugar has also made imports more costly. The prices are expected to remain firm also on account of Pakistan allowing imports. India, being the neighboring country holds the geographical edge for orders therefrom. The company is keeping options open for either an acquisition of an existing plant or another green field project opportunity with an additional capacity of 7500 TCD and expects to commission the same by November, 2006.

Dwarikesh's debut IPO of 5 million equity shares in November 2004 at Rs.65/-(including Rs. 55/- premium) was listed on BSE and NSE and now trading at approx. 165/- which is a growth of 150% in 6 months and yet it is available at prices which are far below the industry P/E ratio. FII's, Indian Mutual Funds and investors have been taking an active interest in the scrip.

Within the forthcoming year, the company has plans to expand its co-gen to 35 MW from present 17 MW. In view of the above expansions, DSIL expects to achieve an estimated turnover of INR 5000 million for the year ended 30th September, 2007, with PAT crossing INR 1000 million mark and an EPS of above Rs. 65. The management has set these targets based on the constant vigil that company maintains on bettering recoveries and lowering both, the financial and manufacturing costs.

ABOUT DSIL

DSIL has achieved a optimum crushing capacity, power cogeneration 17MW and the successful commissioning of a 30 KLPD Distillery plant in February, 2005. Good progress has been made on the new project and it is expected to be commissioned by November, 2005. This new plant will propel DSIL into the larger players' league in the sugar industry.