Shree Renuka Sugars trade 3% lower after Rs 172.3-crore loss in Q3

Shree Renuka Sugars fell 3 percent in early trade on February 12 after company posted a consolidated net loss of Rs 172.3 crore for the quarter ended December FY24.

In the corresponding quarter of the previous fiscal year, the company had reported a profit of Rs 14.3 crore.

As of 9.45am, shares of the company were trading at Rs 47.9, lower by 3.1 percent on the NSE.

The sugar producer’s bottomline fell despite revenue from operations growing by 18.1 percent on-year to Rs 3,014 crore during the quarter. It has received approval from the board of directors to raise up to Rs 2,500 crore via QIP.

“The third quarter’s results reflect our steadfast growth in our operations despite the regulatory headwinds of restricted production of cane juice and ‘B’ heavy ethanol,” said Atul Chaturvedi, executive chairman.

Shree Renuka Sugars’ total income for 9MFY24 has increased by 18 percent over the previous year, driven by improved realisations across all segments. For the nine months ended December 2023, domestic sugar sales volume was up by 3 percent at 247K MT.

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Distillery production during 9MFY24 was 11.73 crore litres compared to 12.16 crore litres during the same period last year because of regulatory ban on ethanol production from cane juice and limiting production from BH molasses.

Over the past six months, shares of the company have gained 6.68 percent. In comparison, the Nifty 50 index has given returns of around 12 percent during the same time period.

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