Thanks to its sugar vertical, the company posted a turnaround in Q4FY16 with a net profit a Rs.51 crore compared to loss of Rs.40 crore in Q4FY15. Sugar business’ earnings improved to Rs. 57 crore v/s loss of Rs.56 crore (YoY). Better sugar prices and lower cost of production led by higher sugar recoveries helped. Further last year there was inventory write-down of Rs. 71 crore during the quarter which also aided the turnaround. Its Chloro Vinyl businesses’ earnings improved to Rs.97 crore, up 35% (YoY), led by higher realisations as well as lower input costs and better efficiencies. The earnings of fertiliser business’ improved to Rs. 6 crore led by higher energy efficiencies as well as volumes. Last year there was a maintenance shutdown in March/April 2015.  Net Revenues for the quarter was flat, up just 2% at Rs.1333 crore. EBIT increased to Rs.107 crore from Rs.7 crore (YoY).

The company ended FY16 with a net revenue at Rs.5841 crore, up 3.5%  and net profit increased by 41% to Rs 297 crore. Subsidy outstanding increased to Rs.761 crore, up 33%. Net Debt as on Mar 31, 2016 stood comfortable at Rs. 1057 crore v/s Rs.688 crore in FY15. The increase is a result of ongoing Chlor Alkali capacity expansion, higher subsidy receivables and sugar inventory. Finance costs stood lower at Rs.86 crore down from Rs.112 crore in FY16 primarily due to lower cost of funds.

For the current fiscal, its chlor-alkali capacity expansion is expected to come on-stream partly in Q1FY17, full capacity along with additional captive power by Q2 FY17. Sugar co-gen expansion project is also expected to be commissioned by Q3 FY17.