Shree Renuka turns sweet

As against a two-week average traded quantity of 80,000 shares of Shree Renuka, some 2.10 lakh shares changed hands today morning. The stock hit the 20% UC at Rs.9.69 and is now traded at Rs.17.50 levels.

The company recorded a 41% (YoY) rise in total income at Rs.1413 crore. Exceptional income of Rs.289 crore, which came from as gain on modification of terms of optionally convertible preference shares,  led to a PBT at Rs.65 crore v/s loss of Rs.330 crore. Continuing with the same rate of tax due to carry forwards tax losses & unabsorbed depreciation, unutilised MAT credi, the company posted a net profit of Rs.274 crore v/s net loss of Rs.473 crore. Income from discontinued operations to the tune of Rs.2894 crore is what helped it end the quarter in the green.

Its sugar segment reported a revenue of Rs.1214 crore but ended with a loss of Rs.60 crore. Sugar has been making losses consistently and so has co-generation. Ethanol trading and engineering are the units giving profits.

Its interest outgo itself is at Rs.519 crore for H1FY20.

The consolidated negative net worth currently is at Rs.350 crore and the management expects to generate operational cash-inflows in the next twelve months, which will support the Group to meets its near future cash obligations.