Shares of Shree Renuka Sugars hit a five percent upper circuit at Rs 35.75 per share in early trade on Monday after the firm announced that it will invest Rs 450 crore to expand its ethanol capacity. The capacity addition would be completed by October 2022.
In a regulatory filing, the company informed that its board has approved expanding production capacity by 430-kilo litre per day to 1,400-kilo litre per day. In February, the board had approved a capacity
expansion of ethanol from 720-kilo litre per day to 970-kilo litre per day.
"Considering the huge untapped demand for ethanol due to the policies of Government of India on ethanol blending, the Board of Directors of the company approved further capacity expansion for ethanol production from 970-kilo litre per day to 1,400-kilo litre per day," the filing said.
The government has mandated 20 percent ethanol blending in fuel by 2025 against a current blending of 7.79 percent. The company sees this as a huge untapped demand for ethanol for the ethanol blending programme which can be of benefit to the company in the future, it added.
For the March quarter, the firm reported a net loss of Rs 44 crore as against a net loss of Rs 1,46.00 during the same quarter a year ago. Sales declined 7.79 percent to Rs 1,320.40 crore in Q4 versus Rs 1,431.90 crore during the year-ago quarter.
For the full year FY21, the net loss was reported to Rs 114.70 versus a net profit of Rs 2,099.20 crore during the previous year FY20.
First Published: Jun 28, 2021 12:39 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
2024 Lok Sabha Elections | What does a low voter turnout indicate for NDA and I.N.D.I.A Bloc
Apr 29, 2024 5:48 AM
'Borrowed' leaders: Congress hits out at AAP for not fielding their own candidates in Punjab
Apr 28, 2024 9:53 PM
EC asks AAP to modify election campaign song and Kejriwal's party is miffed
Apr 28, 2024 9:25 PM