Mumbai: Dwarikesh Sugar Industries Limited, one of the fastest growing integrated sugar conglomerates today announced the results for third quarter ended June 2006. During the quarter, the company has registered Sales turnover at Rs. 76.76 crores, up 61% from Rs 47.67crores during the same period last year. The Net Profit after tax has risen to Rs 9.62 crores, up 33% from Rs7.24 crores during the same period last year.
During the quarter, the company also started work on its third Greenfield project at Dwarikesh Dham located at Barerilly, Uttar Pradesh & expansion of cogeneration capacity by setting up additional 24 MW power cogeneration plant at Dwarikesh Puram unit .The aforesaid expansion would entail an capital expenditure of approx INR 3600 Million which shall be funded through a balanced mix of Debt and internal accruals. The land is already purchased and civil construction work started. We have also placed orders for all major plant and machineries. These expansions will be completed by November 2007 & post expansion the total cane crushing capacity would increase to 21500 TCD , & cogenartion capacities would increase to 86 MW ,out of which 56 MW would be supplied to state grid besides existing 30 KLPD Distillery .
The company has signed agreement with a reputed agency for carrying out all the formalities for availing carbon credit benefits for its upcoming cogeneration expansion.
Commenting on the Q3FY07 results, Mr. G R Morarka, CMD - Dwarikesh Sugar, said "We are in the process of enhancing our sugar production capacity by making optimum use of our resources. Our third plant will commence production by November 2007 and increase our cane crushing capacity by 7500 TCD, co generation capacities by 60 MW . With this our total cane crushing capacity will jump to 21,500 TCD from 14,000 TCD & cogeneration capacity to 86 MW. This will take our power export to 56 MW as against present export of 8 MW spelling into a leap of 600%.The increased capacity will help in better realizations and give a further boost to our sales and profitability"
Mr Morarka mentioned that there has been good monsoon so far in Uttar Pradesh with, more cane plantation per acre & more area has come under cane cultivation which would lead to higher sugar cane production and higher capacity utilisation.
Mr Morarka further commented that there are strong indications that the Government is likely to make mandatory usage of ethanol in all the states very soon .The Government has also favoured entering of long term contracts by refineries with ethanol manufacturers.
Backgrounder - Dwarikesh Sugar Industries Ltd made a successful IPO in November, 2004 raising Rs. 32.50 crores through issue of 50 Lakh shares at a premium of Rs 55 per share (Face value Rs. 10). The issue was oversubscribed 23 times.
The company had also raised $12 mn through issue of 3,000,000 GDRs at US $4 each that were issued in December 2005.
Prior to the commencement of the Greenfield project of 7500 TCD and 9 MW co-generation power at Dwarikesh Puram, the company had a crushing capacity of 6,500 TCD, 17 MW Co-generation power unit (expanded from 9 MW) and a distillery with capacity of 30,000 liters per day. The company exports around 8 MW to UPPCL under a long term Power Purchase Agreement.
