The result was announced after trading hours on Friday, 11 November 2011. The stock slumped 25.73% to Rs 38.40 on Monday, 14 November 2011. The stock is down 39.31% in four sessions from a recent high of Rs 56.85 on 8 November 2011.
Meanwhile, the BSE Sensex was down 207.07 points, or 1.21%, to 16,911.67.
On BSE, 80.56 lakh shares were traded in the counter as against an average daily volume of 12.53 lakh shares in the past one quarter.
The stock hit a low of Rs 34.35 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs 38.70 so far during the day. The stock had hit a 52-week high of Rs 101.50 on 4 January 2011.
The stock had underperformed the market over the past one month until 14 November 2011, sliding 33.45% compared with the Sensex's 0.21% rise. The scrip had also underperformed the market in past one quarter, falling 39% as against 1.66% rise in the Sensex.
The mid-cap sugar maker has an equity capital of Rs 67.13 crore. Face value per share is Re 1.
Shree Renuka Sugars reported consolidated net loss of Rs 615.80 crore in Q4 September 2011 compared with net profit of Rs 128.10 in Q4 September 2010. Consolidated net sales fell 5.1% to Rs 2334.90 crore in Q4 September 2011 over Q4 September 2010.
Shree Renuka Sugars reported a huge forex loss Rs 569.80 crore in Q4 September 2011 largely due to the higher translation foreign exchange loss in Brazilian subsidiaries on the back of depreciation of Brazil currency against the Indian Rupee.
At operating level, margins fell by 160 basis points to 10.5% largely on the back of 160 basis points rise in consumption cost and 100 basis rise other expenses as percentage to sales and net of stock adjustments. This resulted 18% fall in operating profit to Rs 244 crore. However, the 180% surge in other income to Rs 84.40 crore muted the profit before interest, depreciation and taxes (PBIDT) growth to Rs 328.40 crore.
During the quarter, the company diverted higher juice (62%) towards sugar production, as the price of sugar was higher as compared to ethanol. Average realization for sugar segment in India was higher by 10% on account of higher sales price realized for the export sugar. Further, the ethanol segment benefited from the higher prices and higher sales volume during the quarter. In Brazil, it capitalized on higher flexibility to produce maximum ethanol to take advantage of higher ethanol prices.
Commenting on the results and performance, Narendra Murkumbi, Vice Chairman and Managing Director of Shree Renuka Sugars said, Shree Renuka Sugars had a difficult quarter due to a challenging operating environment in Brazil, especially in Sao Paulo state, due to bad weather severely affecting the sugarcane.
The Aracatuba region of Sao Paulo state, where our larger subsidiary Renuka do Brasil is located, had maximum impact of the drought-like conditions and frost and flowering of crops this season. Cane yields were down 31% year on year. Renuka Vale do Ivai displayed strong operational results and has posted good growth in out put and the EBITDA margin.
The company has shown price growth across the sugar and ethanol segment in India as compared to the last year. However, India sugar prices remained flat during the quarter. The volatile global scenario and unavailability of raw material has resulted in lower utilization of the sugar refineries during this quarter.
Besides a consolidated loss at PAT level of Rs 461 million, the company suffered a forex loss of Rs 5698 million due to unrealized variation on foreign exchange monetary items in our Brazilian subsidiaries.
Renuka Vale do Ivai results showcase the effects of a full management turnaround and the company is focused on affecting a similar turnaround in Renuka do Brasil quickly. This primarily involves boosting the planted area of cane over the next two seasons.
The domestic sugar price cycle in India appears to be at a turning point with an undercapitalized industry being forced to run-up large cane appears in order to crush a big crop in sugar season 2011-12