Industry structure and development World Sugar
Industry Structure
Sugar is produced dominantly from sugarcane, while about a fifth is
from beet. Though beet has recorded robust rise in yield, crop area has steeply risen for
sugarcane essentially from tropical countries. Ethanol production consumes about 15% of
the world sugarcane harvest but consistently constitutes over one-half in Brazil. India is
fast catching up in its bid to absorb surplus sugarcane into ethanol production that helps
in concomitant cut in sugar production to achieve sustainable demand-supply parity.
Brazil barring few years of exception has been the top world sugar
producer and exporter while Thailand is normally the second largest exporter. India
occasionally challenges this pecking order to emerge as top producer and second largest
exporter. World trade volume represents about one-third of production, the rest being used
for captive consumption in the country of origin. Import demand is well geographically
distributed as opposed to exports essentially coming from concentrated pockets. China is
the world?s largest importer followed by Indonesia.
India remains unchallenged as the top consumer of sugar despite low and
near static per capita consumption. It has become a structurally surplus sugar producer in
the past decade and a regular exporter in the world market, albeit interfered with
periodical export quota fixation by the Government.
Consumption growth has decelerated from the average of 2.4% since 1960s
to around 1.8% in the last decade. Consumption has steadily shifted from the western
hemisphere towards east. Demand growth is decidedly driven by increasing population and
improved per capita income of such growing population. However, direct demand has dampened
of late due to heightening health concerns and sterner State intervention through sin-tax
levy and red-labelling mandate. Institutional consumption, on the other hand, has been
growing in emerging economies almost in tandem with the growth in national income.
World sugar prices are highly volatile wherein the price volatility for
raw sugar is generally higher compared to white sugar. World prices for white and raw
sugar are strongly co-related. There is clear statistical inverse relationship between
prices and stocks, expressed by the relationship of stock to consumption. There exists a
small positive corelation between the price of sugar and oil.
Status update
World production that remained near flat for three years is well poised
to record a robust rise in 2022-23 crossing 180 mln tonnes to mark a new record. This rise
is essentially contributed by a significant surge in Brazil?s production followed by
Thailand. India and EU suffered a reversal. Year-end stock would also mark a new high in
absolute volume, though not so as a percentage to consumption.
Trade facilitation remains crucial to the health of the global economy.
The impact of the Russia-Ukraine conflict, lockdown in China and container capacity issues
have discernibly declined in recent months. This has allowed sugar to be transacted using
longer sea voyages, aided by fall in freight rates and helped the Brazilian sugar to be
sourced for most distant destinations without compromising competitiveness.
World raw prices showed strident volatility at the start. After
touching a 5-year high in May ‘22, it plummeted to a 4-year low in the next couple of
months. Buoyed by the shrinkage in shipment from India, world prices strikingly started
strengthening since Nov ‘22. After crossing a 20 c/ lb mark in Feb ‘23, the
strong undertone of the market led to lightning rise to cross 24 c/lb by mid Apr ?23
that is an 11-year high! The futures market has for three years been in a contango
structure. As a corollary, the backwardated structure in the futures market between
spreads has got corrected.
Indian sugar
Industry structure
Indian sugar industry is characterized by the coexistence of private,
cooperative and public sector. It is inherently inclusive, supports over 50 million
farmers and their families and finely fits into the Aatma Nirbhar Bharat mission of the
Government. It is rural centric and hence a key driver and enabler for village level
wealth creation. Sugar is India?s second largest agro-based industry after Textiles.
It has tremendous transformational opportunities to meet the country?s food, fuel and
power needs in an eco-friendly manner.
Sugarcane and sugar production are seasonal with more than 90%
happening in the winter months of November to March. Sugarcane use for production of sugar
has steadily increased over time in preference to alternative sweeteners. UR Maharashtra
and Karnataka are the dominant sugar producing States accounting for 85% of country?s
production that would meet more than entire domestic consumption. Household sugar
consumption is about 35% with per capita consumption below 20 kg that is far lower than
Brazil, US and Europe.
Sugar is largely sold as a commodity with branded sugar at its nascent
stage in India, though growing at a CAGR of 8%. It is a niche market with more people
opting for it on the fear that loose commodity may contain dust, foreign particles and
touched by multiple people. Out of the household sugar consumption of 11-12 mln tonnes a
year, hardly 3% is branded as compared to the share of branded product in edible oil
segment at 50-55%. Also there are just few players in every geographical area with no
single brand penetrating all India market.
Sugar industry reforms remain overdue despite growing consensus on the
economic imperative to not delay same. In particular, the desolate disconnect between
sugar and sugarcane price demands a decisive and lasting solution. NITI Aayog too came out
with a report of its Task Force on Sugarcane and Sugar in April 2020 besides CACP
religiously reinforcing its recommendations on this in its annual cane pricing policy
reports. Food Ministry in turn constituted a working committee in Apr ‘21 to engage
with stakeholders and evolve a mechanism for implementation of these recommendations. It
remains regretfully a work in progress for a little too long.
Paradigm shift to ethanol
India has since become a structurally surplus sugar producer. Sugar
exports to deal with this surplus is impeded by our skewed cost structure on account of
high cost of cane. Exports are hence feasible only when world prices are bullish or
subsidized through Government sops, the latter facing the wrath of WTO norms.
Realizing this, the Government firing all cylinders has painstakingly
promoted the ethanol blending that amidst altruistic advantages helps subsume the surplus
sugar in the system. This paradigm shift in ethanol focus has propelled the industry to a
higher trajectory and concomitant re-rating in its valuation.
Having achieved the 10% blend in quick time, India is well poised to
hit 20% blend by 2024-25 that should push the country to the top slot after only Brazil in
achieving such a high mix.
Travails of Tamil Nadu
Tamil Nadu produced below 10 lakh tonnes of sugar for 4 years in a row
till SS 2020-21, a frustrating fall from the peak of 26 lakh tonnes in SS 2006-07.
Successive years of drought stoically sucked the staying power of several private sector
players. Egregious losses and consequent enervated finances mowed down most private sector
mills to a moribund state, while the cooperative mills linger on with liberal Govt funding
support. There has been welcome recovery from the low of 7 lakh tonnes in 2017-18 but yet
its pace is below par.
The State has been fast losing on its competitive edge in terms of
size, season duration and sugar recovery juxtaposed to other major sugar producing
regions. Further, TN sugar mills are mandated to bear in full the transport cost for
sugarcane, while in all the other States the statutory cane price is inclusive of
transport cost. Still worse, TN Government has discontinued its partial subsidy support
for this from SS 2020-21. With TN sugar mills already reeling under high cost pressures
due to despicable sugar recovery and dismal capacity utilization, this add on burden is
outright onerous and overwhelmingly beyond their bearing.
TN sugar industry in collaboration with the renowned ICAR-SBI,
Coimbatore launched in Oct ‘16 a Sweet Bloom project to identify and develop viable
cane varieties relevant to the State. The new cane variety Co 11015 so spotted showed
early promise during trials and its planting was progressively scaled up.
However, its yield performance for the ratoon crop is below par,
dissuading farmers from embracing this variety. A couple of other varieties tried too
fared poorly compared to the long established cane variety Co86032. Thus TN sugar industry
is unsuccessful yet to strike at a sustainably improved cane variety, despite six years of
concerted efforts. Sweet Bloom project version-2 being undertaken by SISMA in
collaboration with ICAR-SBI now remains the industry?s best bet.
Status update
Sugar production during SS 2021-22 touched a new peak at 358 lakh
tonnes. Notably this came after subsuming 32 lakh tonne of sugar by diversion to ethanol.
Maharashtra re-emerged as the top producer after five years.
India achieved steady and startling rise in sugar exports since 2016-17
that peaked to 11.2 mln tonnes in 2021-22. The Government however in a policy reversal in
May ‘22 shifted sugar exports from OGL to restricted list. It capped SS 2021/ 22
exports to 100 lakh tonnes that later was relaxed to 112 lakh tonnes.
Sugar production during 2022-23 season is slated to slide to below 330
lakh tonnes, a decline of 8 % YoY This is due to late rains impacting cane yields in both
Maharashtra and Karnataka. Indeed, Maharashtra would swiftly slip to the second slot
behind UP after regaining its top rank hardly one season before. While the Government in
Nov ‘22 fixed an export quota of 60 lakh tonnes, no additional quota may be
forthcoming by reason of lower production over initial estimates. At a time when global
prices are ruling at about 18% premium to domestic prices, Indian sugar industry has been
shut out of the opportunity to make optimum use of this window.
Cogen
Cogeneration of power was conceived three decades ago to diversify the
revenue stream and counter the cyclicality in sugar business. After the advent of
Electricity Act, 2003, the promotional measures pursued under Government initiative by way
of preferential tariff, assured off-take and long term power purchase agreement helped
attract huge investment in bagasse based cogeneration of power.
Cogen however has lamentably lost much steam in recent years. Returns
are hit by surplus power situation, falling tariff and improved connectivity that are no
doubt welcome from a macro perspective. This has however turned high cost investments
since FY ?17 in cogen unviable by dint of declining power tariff and steadily rising
maintenance cost, parlously pulling down power margins. Availability and price of
alternative fuels remains a challenge.
Having failed in its earlier attempts to bail out State Discoms and
discipline the power market, Gol brought in new set of Rules and Regulations in 2022. The
Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 that came into effect
from 3rd June 2022 brought in sterner measures to deal with liquidation of old outstanding
dues as well as clearance of current dues with punitive measures for default. The new
Rules however are like the typical curate?s egg. In particular, the Rules provide for
liquidation of old outstandings over an inordinately long duration of 48 EMIs. Adding fuel
to fire, it mandates zero interest compensation during such long period of delay. It is
pretty paradoxical that the prodigal Discoms get rewarded at the
cost of a performing and non-defaulting power producer in the bargain!
On the positive side, the EMIs to clear past dues are getting paid scrupulously adhering
to the timeline, while current dues are also honoured with only marginal delay.
Further, bagasse based cogeneration units suffer undue delay and
ultimate loss of revenue by dint of Regulators dragging their feet from timely revision of
tariff. The two-part regulatory tariff under the cost plus template unequivocally warrants
annual revision in the variable cost component essentially to cover the fuel cost
escalation. But the time lag due to dithering and eventual denial of higher tariff for
long periods lead to gross under recovery in the cost of producing power and in turn
denude the guaranteed ROI. The ‘control period? under the tariff regulations
would need strict conformance.
REC mechanism was conceived to devise a tradeable instrument to
incentivize renewable energy production. With lackadaisical enforcement, its intended
objectives get hardly realized. Further the Regulator was periodically lowering the floor
and forbearance price and indeed the floor price has since been scrapped. To top it all,
CERC-REC Regulations, 2022 now disqualify captive consumption from saleable REC
entitlement. This strikes a lethal blow to renewable energy projects like that of our
company that came to be established on the strength of stated policy incentives to promote
renewable energy capacity in the country.
Bagasse based cogeneration brings to bear multitude of benefits to the
economy and environment. Power supply is closer to the destination rural markets, while
fuel efficiency gets optimized in the factory. Above all, the incremental revenue from
power supports sugarcane price payment particularly during times of distressed sugar
price. It hence calls for renewed policy thrust to revitalize renewable energy production
from bagasse.
Ethanol
The Ethanol Blending Program (EBP) with petrol in the country has had a
chequered progress. Introduced first in 2003 and reinforced again in 2007 with a 5% blend
target, the actual mix remained tardy low. For the first time, ethanol blend reached 5%
during Ethanol Supply Year 2019-20, that rose to 8.5% in 2020-21 and recorded 10% in
2021-22. The rollicking rise in blend % is thus both swift and substantive.
GoI has doubled-down its efforts to promote ethanol production in the
country from multiple feedstocks, while sugarcane would in all probability remain the
principal source. Flex fuel engines would be rolled out to give customer the choice of
fuel. Studies are on for developing a technology to blend ethanol with diesel. GST on
ethanol blended petrol has been lowered from 18% to 5% from 1st January 2023. GoI is thus
blazing all guns to bolster ethanol production and consumption.
GoTN on its part has come out with the ‘Ethanol Blending Policy
2023? notified on 18th March 2023. It is holistic to deal with all facets of ethanol
production and sale. It has welcome clarification on the regulatory and tax issues as
well.
Brazil, the pioneer in EBP which started it way back in 1975 took 25
years to raise the blend mandate from 10 to 20%. Viewed so, India?s resolve to double
the blend in just about 3 years would seem audacious, but with committed pursuit
achievable.
Government Policies
(i) Sugar
• GoI imposed stock holding norms and introduced MSQ for sugar
from June ?18 that continues to remain in vogue.
• GoI raised the MSP for sugar from Rs 29 to Rs 31/ kg in Feb
?19 that remains unrevised till date.
• GoI has discontinued the export subsidy from SS 2021/22.
• GoI in May ?22 shifted sugar exports from OGL to restricted
category and capped total exports at 100 lakh tonnes for SS 2021 /22 - Additional 12 lakh
tonnes allowed in August 2022.
• GoI notified MAEQ for SS 2022/ 23 at 60 lakh tonnes, allocated
same mill-wise and made it tradable.
• Compulsory jute packing for sugar continues at 20% for Jute Year
2022-23.
(ii) Cane price
• GoI in Aug ?22 announced increase in FRP by Rs 15/ qtl to
Rs 305/ qtl for SS 2022-23 that is linked to base recovery of 10.25% (increased from 10%
of previous season).
• GoTN discontinued the transport subsidy of Rs 100/ t for the
sugar mills since SS 2020-21; industry to bear full transport cost.
• GoTN offers Rs 195/ tonne incentive price for cane.
(iii) Cogeneration
• TNERC is yet to announce revised tariff for Control Period
2022-24, though Consultation Paper was issued in Jan ‘22.
• MoP in June 2022 notified the Electricity (Late Payment
Surcharge and Related Matters) Rules, 2022. It allows Discoms to pay the legacy dues over
EMI enuring up to 48 months, free of interest.
• MoP in July ?22 notified the RPO trajectory till 2029-30.
• CERC in May ?22 notified REC Regulations 2022. It curtails
sale entitlement of REC available to captive generating stations.
• CERC lowered the cap from Rs 12 to Rs 10 per unit for power sold
in all market segments.
• CERC has extended the applicability of its RE Tariff Regulations
by six months up to 30.09.2023.
(iv) Ethanol
• GoI in NovRs 22 notified higher ex-mill price of ethanol for
supply to public sector OMCs during ethanol supply year 2022/ 23.
| Feedstock |
ESY 22 |
ESY 23 |
| C-Molasses |
46.66 |
49.41 |
| B-Heavy Molasses |
59.08 |
60.73 |
| Sugarcane juice/ syrup |
63.45 |
65.61 |
• ESY redefined as 1st Nov of a year to 31st Oct of the following
year effective 1st Nov 2023.
• GST reduction on Ethyl Alcohol supplied to OMCs for blending
with petrol from 18% to 5% effective 1st Jan ?23.
• GoTN announced Ethanol Blending Policy 2023 on 18th Mar
‘23.
Opportunities & Threats
India has a low per capita consumption of sugar with growing income.
Its large domestic market provides a strong platform to leverage local production for
capturing global market. This however demands cane cost optimization through improved farm
productivity and high sucrose cane variety, besides effectively tapping the byproducts for
greater value addition.
Ethanol presents an elegant value chain for sugar industry. Government
policies are directed towards increasing the ethanol blend in petrol and concurrently
cutting sugar surplus through premium pricing for ethanol produced by
way of sugar substitution. Indeed, the Government has advanced the EBP
target to reach 20% blend by 2025 and is encouraging ethanol production from multiple
feedstocks besides sugarcane.
Sugar business is intrinsically cyclical, but India has emerged
structurally surplus over the last decade. Markets tend to over react to demand-supply
disequilibrium, causing volatile change in product pricing. Cogeneration and Ethanol have
turned significant value creators to soften the adverse fall out of sugar surplus. Sugar
exports and ethanol production from diverted sucrose now play a stellar role to declog the
glut and correct closing sugar inventory to desirable level.
Sugarcane is a robust crop but its availability is critically dependent
upon nature. Repeated monsoon failure, frail flow in river Cauvery and dead storage level
in Mettur reservoir that caters to the company?s command area of cane together throw
up a tantalizing challenge to agriculture in its neighbourhood, thwarting cane cultivation
in the process. Drip irrigation is catching up but the high capital outlay, glitches in
Government subsidy schemes and deficiency in water resources not enough to meet even the
minimal drip requirement for cultivation during deficit years impede its pace of adoption.
Harvest labour shortage increasingly poses an intimidating challenge to
both the cane farmers and mills in the State. In particular, harvest charges in TN are
twice or thrice compared to other major sugar producing regions. Frequent and excessive
absenteeism ineluctably interrupts daily crushing schedule. Mechanization, though not a
panacea with several imponderables associated with it, is no longer a matter of choice but
is fast emerging as a dire necessity for sugarcane harvest in TN.
The disconnect between sugar and sugarcane prices in the absence of
Price Stabilisation Fund advocated by CACP creates periodical pressures, more particularly
during industry downturn. Sugarcane pricing reform is overdue.
Sugar industry is criticized on two counts. While its end product, viz.
sugar is sledge-hammered as a health hazard, the raw material i.e., sugarcane is condemned
as water guzzler. Much of these are over-blown but the underlying message should merit and
meaningfully warrant dispassionate introspection. Accordingly, ISMA has taken the lead to
spread right awareness, while simultaneously underpinning the need for a holistic and
pragmatic approach.
Segment-wise or product-wise performance
The Company is engaged in two segments, namely Sugar and Cogeneration
of power (Cogen). The segment-wise performance for the year is as under:
| Particulars |
Sugar (tonnes) |
Cogen (Lakh units) |
| Production |
91326 |
1213 |
| Sales |
89070 |
850 |
|
lakhs |
lakhs |
| Sales |
30882 |
4148 |
| Operating Profit |
2727 |
2174 |
Outlook
World sugar prices have shown strong resurgence in the backdrop of
production pressures in key countries like India, Thailand and China. In turn, it has
tilted price parity in favour of sugar over ethanol. As a result, Brazil can be expected
to hit a new record in its production. India more likely will have continuing export caps,
given its frail stock levels and fastidious focus on ethanol. Global sugar prices should
hence stay strong in the near term.
India would for sure start SS 2023-24 with minimal and manageable
inventory levels. While production would in all probability be far higher than domestic
demand, export and ethanol together should be able to tackle the emerging surplus. Sugar
margins can be expected to strengthen, piggybacking on extant demand-supply equilibrium.
Sugarcane planting in TN that picked up in the last couple of years,
has again started showing stress. High cost of farm labour and better returns from
competing crops have together dampened farmer?s interest in cane crop. With sugar
prices hovering at levels below those prevailed five years ago, there is persisting margin
pressure for the sugar mills that limits their financial capability to offer higher cane
price or diverse forms of incentives to rejuvenate cane planting. There is thus a
sustainable crisis for the industry in the State.
Amidst macro-level challenges outlined above, our company is relatively
better placed to combat these headwinds as detailed in the Board?s Report.
Risks and concerns
The management cautions that the risks outlined below are not
exhaustive and are for information purposes only. Investors are requested to exercise
their own judgment in assessing various risks associated with the industry and the
company.
Industry risk
Sugar industry being agro based and in commodity business is fraught
with seminal climatic and cyclical risks. It has to source sugarcane from its
neighbourhood and out of command area where growth and availability hinges upon monsoon
and water table. Despite recent liberalization by Centre, there are continuing controls on
cane area, cane pricing and periodic market intervention measures.
Cogen tariff is determined by the Regulator for supply to TANGEDCO
under a long term PPA that is currently unfavourable compared to prevailing market rates.
There are growing litigations in the appellate forum (APTEL) on the tariff determination
process, multiplicity of charges, purported move to migrate to competitive bidding posing
palpable uncertainty in the continuity of current PPA and captive consumption tax. The
final outcome on any and all of these would have considerable impact on the company.
Ministry of Power through the Electricity (Late Payment Surcharge and
Related Matters) Rules, 2022 mandates that all old dues are now payable over 48 EMIs
without interest. This entails considerable interest loss for the affected players,
including our company, besides choking current liquidity.
Risk mitigation
The Company has built enviable relationship over the years with the
local farming community. It has judiciously used surplus cash generated during industry
upturn to pare debts and stay lean and financially fit. It has diversified into Cogen. It
has of course little control over agro-climatic risks, regulatory interventions and market
risks.
Risk specific to the Company
Erode Sugar Mill is squeezed for land in its factory area that impedes
scope for major expansion or diversification plans. Prospects for cane area expansion is
listless. Of late, its command area for cane has become increasingly susceptible to water
stress.
GoI policy push to help sugar industry of late is centered on ethanol.
The company?s plan to set up ethanol unit is making slow progress due to cumbersome
and time consuming process for environmental clearance. Specific guidelines/
clarifications have been sought from GoTN under the new Policy for locating the ethanol
plant within the existing sugar mill complex with permission to produce all co-related
products such as ENA and RS. Its response is awaited.
The company?s location is densely populated and distillery project
is prone to public resistance on perceived threat of polluting the water-bodies in the
neighbourhood. The ethanol project of the company is planned on state of the art
technology to ensure zero liquid discharge and protect the environment.
Risk Management
The Board being responsible for framing, implementing and monitoring
the risk management plan for the company has laid down the framework for risk assessment
and mitigation procedures. It has set out detailed framework to deal with key areas of
risks encompassing raw material risk, product price risk, regulatory risk, finance risk
and risk specific to the company. It has put in place adequate system to keep its key
operating team aware and beware of the likely risk factors. Internal control systems and
internal audit checks help the company continuously monitor emerging risks and take timely
corrective action. There is no element of risk in the opinion of the Board which may
threaten the existence of the company.
Disclosure of strategy
SEBI circular dated 10.05.2018 requires listed entities to consider
disclosure of medium-term and long-term strategy within the limits set by its competitive
position based on a timeframe as determined by its Board of Directors. It further requires
articulation of a clear set of long-term metrics specific to the company?s long-term
strategy to allow for appropriate measurement of progress.
Pursuant to the above, the Board of Directors in Oct ?18
considered and approved the long-term strategy and medium-term strategy for the company.
For this, the Board has set 3-5 years tenure for medium-term and more than 5 years for
long-term in deciding appropriate strategy. The long-term and medium-term strategies are
disclosed in the company website -www.ponnisugars.com.
Internal Control Systems and their adequacy
The Company has proper and effective internal control systems
commensurate with its nature of business and size of operations to ensure that all
controls and procedures function satisfactorily at all times and all policies are duly
complied with as required. These are considered adequate to reasonably safeguard its
assets against loss or misappropriation through unauthorized or unintended use.
There is adequate and effective internal audit system that employs
periodic checks on on-going process. The Audit Committee of the Board of Directors
regularly reviews the effectiveness of internal control system in order to ensure due and
proper implementation and due compliance with applicable laws, accounting standards and
regulatory guidelines.
Human Resources
The Company employs 158 seasonal and 126 non-seasonal employees.
Industry-wide wage settlement expired on 30th September 2018. Renewal talks have since
begun and the new accord should be reached soon. Industrial relations remained cordial
throughout the year.
Discussion on Financial Performance with respect to Operational
Performance Operational Performance
|
Year ended |
|
31.03.2023 |
31.03.2022 |
| Number of days |
306 |
249 |
| Average Crushing rate (tcd) |
3013 |
2596 |
| Cane Crushed (t) |
921849 |
646407 |
| Recovery (%) |
9.94 |
9.84 |
| Sugar produced (t) |
91326 |
63555 |
| Power production (lakh kwh) |
1213 |
875 |
The company?s operational performance sets several records during
the year. Cane volumes increased by over 40% that was just a tad below the highest 15
years ago. Crushing rate, often times interrupted by harvest labour shortage, was still an
all-time high. Power production and sale peaked and for the first time crossed 60% PLF.
There was all round operational excellence with optimal utility consumption and cost
saving. Details are covered in the Board Report.
Financial performance
(Rs crores)
|
Year ended |
|
31.03.2023 |
31.03.2022 |
| Total Income |
450.49 |
295.32 |
| Profit Before Interest, Depreciation & Tax |
55.55 |
42.53 |
| Profit Before Tax |
47.62 |
35.97 |
| Profit After Tax |
38.34 |
29.25 |
The financial performance is underpinned by improved operations and
marked uptick in off-take. Our turnover for the first time crossed .400 crores benchmark.
Despite near static sugar prices and negative correction in molasses and power
realization, there is startling improvement in our profit performance. Our bottom-line no
doubt was boosted by one time gains through interest realization from power dues and
swapping our export quota but is noteworthy for being the highest in over a decade.
Key Financial Ratios
| Description |
U/M |
2022-23 |
2021-22 |
Change % |
Explanation |
| Operating Profit margin (PBIDT / Total Income) |
% |
12.33 |
14.40 |
(14.38) |
Narrowing differential between input-output prices |
| Net profit margin (PAT / Net Sales) |
0/ % |
8.81 |
10.14 |
(13.12) |
-do- |
| Interest Coverage |
Times |
- |
- |
- |
|
| Return on capital employed |
0/ % |
17.80 |
15.59 |
14.18 |
Increased volume of operations. |
| Return on Net worth |
% |
18.75 |
16.28 |
15.17 |
-do- |
| Earnings per share |
|
44.58 |
34.01 |
31.08 |
-do- |
| Debt Equity ratio |
Times |
- |
- |
- |
|
| Current ratio |
Times |
3.00 |
3.29 |
(8.81) |
Part of power dues converted to long term EMIs |
| Net worth per Share |
|
295.45 |
256.91 |
15.00 |
Improved results on increased sale of operations. |
| Debtors Turnover |
% |
1.73 |
1.18 |
46.61 |
Increase in turnover. |
| Inventory Turnover |
% |
5.60 |
4.56 |
22.81 |
-do- |
Cautionary Statement
Statements made in this Report describing industry outlook as well as
Company?s plans, projections and expectations may constitute ‘forward looking
statements? within the meaning of applicable laws and regulations. Actual results may
differ materially from those either expressed or implied.
|
For Board of Directors |
|
N Gopala Ratnam |
| Chennai |
Chairman |
| 28th April 2023 |
DIN:00001945 |
+91-9892691696
