Shree Renuka Sugars posted a weak set of numbers in the fourth quarter. The sugar segment dragged revenue down. The trading segment also saw a sharp fall in revenues. The year-on-year (YoY) sugar revenues were down 47% at Rs 113 crore against Rs 212.5 crore. For the year as a whole revenues were down 34% at Rs 785.7 crore against Rs 1,199.4 crore.
Most of the losses seen in Q4 and FY18 are exceptional items, said Narendra Murkumbi, VC and MD of Shree Renuka Sugars.
“We have taken full provision for our Brazilian investments and advances are linked to that. We have also marked down our inventory to current levels,” he said, adding that they have valued it at conservative level.
Out of 450,000 tonnes sugar produced, only 162,000 were left by end of March. The loss is around Rs 100 crore, he said, adding that ethanol saw a strong performance.
The company has decided to get rid of the Brazilian unit, which has been in bankruptcy protection for last two and a half years, Murkumbi said.
“In December and March quarter they took complete provisions on all investments and advances to the Brazilian subsidiary and so no longer expect any upside from there,” he said.
First Published: May 4, 2018 3:29 PM IST
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