The Oudh Sugar Mills Limited net profit falls, down 96.67%

The Oudh Sugar Mills Limited announces its Unaudited Financial Results (Provisional) for the 1st Quarter ended September 30,2006

New Delhi, October 27, 2006

The Oudh Sugar Mills Ltd (Oudh Sugar), pioneers in sugar industry belongs to the renowned K.K Birla Group. The Board of Directors of Oudh Sugar at its meeting held on the 27th October, 2006 took on record the Unaudited Financial Results (Provisional) for the 1st quarter ended 30th September, 2006.

Oudh Sugar reported a marginal increase in turnover at Rs.11,550.81 Lakhs and a decrease in net profit at Rs.17.24 Lakhs for the quarter ended 30th September, 2006 as against a turnover of Rs.11,495.19 Lakhs and net profit of Rs.517.51 Lakhs respectively during the quarter ended 30th September, 2005. The results of the quarter ending September is always depressing due to the seasonality of the sugar industry and as such cannot be considered as an indicator of the likely results for the year as a whole.

The dip in profitability has been due to lower margins on account of increased cane costs without corresponding increase in sugar prices. The expansion of Hargaon and Narkatiaganj plants have been completed and will commence operations in November, 2006 and will improve the profitability of the company.

In NSE, the company's shares closed lower at Rs.121.45, down by 0.90%.

Source : Equity Bulls

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