DSIL announces 52% rise in sales in FY06; Maintains Dividend at 60% on expanded equity capital

New Delhi: Dwarikesh Sugar Industries Ltd, one of the fast upcoming integrated dividend paying sugar company, has announced 52 % higher sales for the financial year ended September 30, 2006 from previous year levels. The company's financial year is same as that of the sugar year. The board of directors today formally approved and announced the audited financial results for the year ended September 30, 06 & recommended a dividend of 60% (Rs 6 per share) on the expanded equity share capital on pari passu basis, notwithstanding the fact that some of the shares were allotted during the year.

During the year to September 30, 06, the company's sales have climbed to Rs 234.66 crores, up 52% up from the previous year. After various deductions, the PBDIT has been lower at Rs 45.62 crores, 2.25 % down from Rs46.67 crores in the previous year. The net profit has been Rs 20.84 Crores, 22 % down compared to the previous year , mainly on account of increased cost of Sugar cane on account of additional exceptional payments to farmers ,lower recovery in general in Uttar Pradesh, which affected recovery in our units 10.10% at Dwarikesh Nagar (previous season 10.48%) & 10.20% at Dwarikesh Puram.

Explaining the overall performance of the company during the year, Mr G R Morarka, chairman and managing director said: "The performance during the year has been in line with the performance of the sugar industry that has witnessed 27.73 % higher sugar production from previous year. During the year, we have commenced our 2nd plant that takes the total cane crushing capacity to 14000 TCD, up 115% from previous year's capacity of 6500 TCD levels".

Mr Morarka further informed that crushing for Sugar season 2006-07 has begun on 10th November ,2006 at both the units viz. Dwarikesh Nagar (DN) & Dwarikesh Puram (DP ) & the company is getting adequate canes at both the units ,the recovery trend is better this year by around 0.30 % over the previous season at both the units. We expect a growth of 50% in cane crushed and sugar production as our DP unit will operate for entire season at optimum capacity.

He further informed that expansion project of additional 24MW cogeneration & setting up of new sugar plant of 7500 TCD expandable to 10000TCD with 36 MW cogeneration at Dwarikesh Dham (DD) ,Bareilly district is going as per schedule & commissioning of both the expansions is likely to be completed by November,2007.

ETHANOL FORAY - During the current year (FY07), the company has joined the Ethanol program of the government. The company has 30,000 liters per day capacity to produce ethanol the production of which has begun from November 2006. The company has also stepped up its cogeneration facilities to around 26 MW. Both these would contribute substantially to the bottom line of the company during the FY2007.
About Dwarikesh Sugar - Dwarikesh Sugar Industries Ltd made a successful IPO in November, 2004 raising Rs. 32.50 crores. The company's IPO of 50 lacs shares at a premium of Rs 55 per share (Face value Rs. 10) was oversubscribed 23 times. In addition, the company had also raised $12 mn through GDRs' issued in December 2005. Currently, the company has a total cane crushing capacity of 14000 TCD, 26 MW Power Co-generation capacity and a distillery with capacity of 30,000 liters per day which will go upto 21500 TCD and 86 MW power respectively during coming sugar season 2007-08.