Mumbai (Maharashtra) [India], August 8 (ANI): India's largest sugar and ethanol manufacturing company Bajaj Hindusthan on Saturday reported a net loss of Rs 53 crore during the quarter ended June due to high raw material costs and unfavaourable demand-supply situation amid the COVID-19 crisis.
In Q1 FY20 too, it had reported a net loss of Rs 18 crore. Revenue from operations in Q1 FY21 declined to Rs 1,337 crore from Rs 1,654 crore in Q1 FY20.
The company said losses were mainly attributable to high raw material costs -- sugarcane prices and other input expenses -- and relatively lower realisation of finished products sugar and molasses, which is determined by market forces based on the demand-supply situation and other market dynamics.
"The company has dues payable to farmers for sugar cane purchases. It is continuously striving for improvement in operational efficiencies. The above factors indicate a material uncertainty, which may cast significant doubt about the company's ability to continue as a going concern," it said in a statement.
Bajaj Hindusthan Sugar has 14 sugar plants in Uttar Pradesh with an aggregate sugarcane crushing capacity of 1.36 lakh tonnes crushed per day and a distillery capacity to produce 8 lakh litres of alcohol per day.
It is also one of the largest ethanol producers, which is currently producing 38 million litres of ethanol in a year. The company has increased its ethanol manufacturing capacity to nearly 218 million litres per year. Besides, it generates close to 430 megawatts of power from bagasse produced in the sugar mills. (ANI)