SHREE RENUKA SUGAR SHINES WELL AMONG SUGAR STOCKS IN Q/E 31.03.2010

SHREE RENUKA'S Q/E  MARCH 2010 RESULTS EXCELLENT RISE IN PROFITS
A PTI report dated 27.04.2010 on Shree Renuka sugars on its 2nd q/e 31.03.2010 results says that -  the company has reported a surge of nearly seven fold in its consolidated profit to Rs 224.2 crore for the 2nd quarter ended March 2010, as against Rs.33.2 cr for the 03 09 qtr last year.   The company's full financial year ends in September. The company's consolidated financial results include the unaudited results of all subsidiaries, (including the figures of Brazil- based Vale Do Ivai SA Acucar E Alcool (VDI), which has become subsidiary from March 19, 2010), Shree Renuka Sugars said in a filing to the Bombay Stock Exchange. During the Qtr, Renuka's consolidated total income increased to Rs 1,806.9 crore from Rs 442.5 crore of the corresponding period a year ago. On a standalone basis, the sugar producer posted a profit of Rs 195.9 crore for the quarter ended March 31, as compared to Rs 24.1 crore for the three-month period ended March, 2009. Thus, both its stand alone and consolidated results appear to be very good. Based on the Results, Shree Renuka must merit the attention of the market once again. As can be seen from the table below, the Face value of the share is Rs.1 . According to unaudited,consolidated, cumulative EPS for 6 months is 7.53. So, the annual EPS is likely to be around 15 on a FV of Rs.1, which is quite a good performance.  Even if sugar prices come down, the EPS will not fall below Rs.12 per share of Rs.1 FV. At current price of 63-64, the P/E is hardly 5 and leavers good scope for further appreciation. The comparative results are placed below : Quarter Ended 31-03-2010 31-12-2009 30-09-2009 30-06-2009 31-03-2010 Particulars Un-audited Un-audited Audited Un-audited Un-audited Net Sales 155700 125300 85630 71550 32410 Increase/decrease in SIT and WIP -45630 -13680 20780 -4490 -32470 Raw Materials 162120 103420 47180 58240 50660 Employees Cost 1480 1390 1070 960 1320 Depreciation  1940 1800 1720 1640 1550 Other Expenditure  8790 6820 6070 4630 5020 Total Expenditure 128700 99750 76820 60980 26080 Profit from Operations 27000 25550 8810 10570 6330 Other Income5 4470 2670 -730 930 240 P B I E 31470 28220 8080 11500 6570 Interest6 1600 2100 760 2260 2920 PAI &BE 29870 26120 7320 9240 3650 PBT 29870 26120 7320 9240 3650 Tax 10280 6650 2500 3130 1240 PAT 19590 19470 4820 6110 2410 Net Profit 19590 19470 4820 6110 2410 Dividend (%) - - - - - F V In Rs 1 1 1 1 1 Equity 6700 3170 3170 2800 2800 Reserves - - 121190 - - Basic EPS 3.04 6.14 1.13 2.18 0.86 Diluted EPS 2.91 6.14 1.13 2.18 0.86