Financial results turn sweet for Shree Renuka Sugars

Shree-Renuka-SugarsBranded sugar company, Shree Renuka Sugars reported its quarterly profits on Tuesday. The figures show that there has been an exponential increase in its results.

But even with this there has been a big slide in its margins. This has happened because of the price of raw sugar as well as other sweeteners slid after India imported sugar from outside.

Also, the government has made stricter norms regarding the storage and selling of sugar in the open market.

Meanwhile, Shree Renuka saw its consolidate profits rise to Rs. 2.24 billion as compared to Rs. 0.33 billion last year. The company's net sales also went more than four times to touch Rs. 17.8 billion during the Jan-march period.

Besides this, the company has also gone for inorganic growth during the same period. It bought over the Brazilian sugar and ethanol maker, Vale Do Ivai S. A. Acucar E Alcool. The deal cost the company $82 million.

Shree Renuka has also signed an agreement with Brazil's Equipav SA Acucar e Alcool. The money involved in the deal was $329 million, for buying 51 per cent stake in the sugar company.