Thursday, May 23, 2024

Vishwaraj Sugar Industries 9MFY22 Net Profit rises by 337.86 per cent to Rs 20.67 crore

BSE 542852 & NSE(VISHWARAJ) listed, Vishwaraj Sugar Industries Ltd. (VSIL), an integrated sugar and ethanol manufacturer, posted a 395.68 per cent rise in net profit at Rs 20.67 crore for the nine months period ended December 31, 2021, compared to Rs 4.17 crore corresponding period in the previous year. Total Revenue during this period grew by Rs 27.62 per cent at Rs 337.86 crore compared to Rs 264.73 crore in the corresponding period the previous year.

Integrated sugar and ethanol manufacturer, Vishwaraj Sugar has a sugarcane crushing capacity of 11,000 MT per day, distillery capacity of 100,000 litres per day,
co-generation capacity of 36.4MW, and vinegar manufacturing capacity of 70,000 litres per day. The process of reengineering implemented by the company leads to a
bacteria-and- pathogen-free superior grade sugar and ethanol. While the acceptance
level for pure alcohol/ethanol is 99.6%, the company has already achieved and delivered 99.9%, benchmarking the best international standards. Also, by implementing the process reengineering, VSIL has managed to bypass the capital
investment for setting up a sugar refining facility, thereby saving a sizeable Rs 80
crore, thereby increasing the overall ROI.

Meanwhile, the third quarter ended December 2021, Vishwaraj Sugar has posted a
61.06 per cent rise in total revenue at Rs 133.28 crore compared to Rs 82.75 crore
in the corresponding quarter ended December 2020. While Net Profit stood at Rs
29.44 crore for the quarter ended December 2021 compared to Rs 30.46 crore in the
corresponding period the previous year due to higher tax payments in the quarter.

Management Commentary “We plans to move up the value chain by targeting new clientele in the pharmaceuticals, health supplements & nutraceuticals. Razor-sharp focus on high- value high- margin products, such as pharma grade sugar and ethanol, is expected to increase the revenue per tonne of sugarcane crushed over the next five years. Also, we plan to ramp up the capacity by for ethanol taking total capacity to 500,000 litres per day, said Mukesh Kumar,Executive Director, Vishwaraj Sugar Industries Ltd. 

Going forard, VSIL plans to move up the value chain by targeting new geographies, sectors, and clientele in the pharmaceuticals, health supplements and nutraceuticals,
and beauty and personal care industries. These markets belong to the niche category and are characterised by enhanced price realisation and improved receivables management.

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