Bajaj Hindustan Sugar Limited reported on Friday that it has reduced its consolidated net loss to Rs 75.63 crore for the quarter ending in September, helped by lower expenses and the complete repayment of sustainable debt. This shows an improvement from the Rs 122.87 crore loss it reported in the same quarter last year.
The company’s revenue for the quarter held steady at Rs 1,163.26 crore. Total expenses dropped to Rs 1,238.95 crore, down from Rs 1,286.18 crore, according to financial result.
“With the repayment of entire sustainable term debt, the finance cost has reduced and the same will improve the company’s liquidity position which help the company to reduce its cane dues, increase the cane development activities, improve the operational efficiencies which will lead to higher cane crush, better capacity utilization, higher sugar recovery, increased sugar production and optimization of by product,” the Bajaj Hindusthan Sugar said in a financial result.
Looking ahead, Bajaj Hindustan Sugar sees reasons for optimism. The government is considering increasing the minimum selling price of sugar, and ethanol prices are also expected to rise. Recent policy changes allowing ethanol to be made from B-heavy molasses and sugarcane syrup are anticipated to benefit the company further.
The Company is the largest integrated sugar and ethanol manufacturing company in India with 14 sugar factories (1,36,000 TCD), 6 Distilleries (800 KLD) and cogeneration (449 MW) facilities and crushes around 14% of the total sugar cane grown in the State of Uttar Pradesh. It has huge potential for improvement and growth due to its scale, size and vintage. The Company also expects to receive accrued benefits of Rs 1,860 crore including interest as on September 30, 2024, under the Sugar Industries Promotion Policy, 2004 for which it is entitled as per Court orders but presently, the matter is sub-judice.
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