Simbhaoli Sugars Limited on May 29 announced its financial results for the fourth quarter and full year ended Mar 31, 2024.
Consolidated Performance overview:
Net income from operations at Rs 345.38 crore in March 2024 down Rs. 361.92 crore in March 2023.
Quarterly net profit at Rs. 35.15 crore in March 2024 up from Rs. 23.44 crore in March 2023.
EBITDA stands at Rs. 52.37 crore in March 2024 up from Rs. 38.20 crore in March 2023.
According to the company, for the year ended March 31, 2024 and in previous years, due to higher raw material cost i.e. sugarcane costs (SAP) fixed by State government and relatively lower sales realization of finished sugar on adverse demand & supply scenario, and other eternal factors, the Holding Company had continuously incurred huge cash losses resulting in complete erosion of its net worth, rendering the Company unable to meet payment obligations towards its lenders as well as to the sugarcane farmers in terms of their respective agreements and understanding. All the production units of the Holding Company are operational continue to operate at sub-optimum levels on year-on-year basis while consistent efforts are being made for improvement in operational efficiency viz. improvement in sugar recovery, reduction in overheads and reduction in other operational and administrative costs etc. However, due to lack of required working capital and no capex being undertaken towards augmentation and modernization, the operations of distillery and sugar plants are still adversely impacted. Further, the availability of required sugarcane for optimal utilization of production capacities is still a challenge on account of aforesaid reasons. In distillery segment, non-installation of incineration boilers and other equipment’s to meet the stringent requirement of Pollution Control Board is still resulting in curtailed production levels. Further, the expected accrued benefits under the Sugar Industries Promotion policy 2004 has not been yet disbursed by the State Government as the matter is sub-judice.
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