India's largest sugar firm Bajaj Hindusthan today reported a net loss of Rs 509.49 crore during the quarter ended September 30 on higher input cost and lower sales realisation of sweetener.
The company had reported a net loss of Rs 122.41 crore in the year-ago period, Bajaj Hindusthan said in a filing to the BSE.
However, total income from operations rose by 18 per cent to Rs 1,331.73 crore during July-September quarter from Rs 1,128.10 crore in the corresponding period of previous year.
Bajaj Hindusthan has 14 sugar plants in Uttar Pradesh with a sugarcane crushing capacity of 136,000 TCD (tonne crushed per day) and a distillery capacity to produce 8 lakh litres of alcohol a day.
Bajaj suffered a loss of Rs 274.30 crore during quarter ended September 30 in the sugar segment against Rs 27.70 crore in year-ago period.
Industry body ISMA had recently said that sugar mills in Uttar Pradeh incurred a loss of about Rs 3,000 crore during 2012-13 marketing year (October-September) due to higher cost of sugarcane compared with other states. The ex-factory price of sugar was lower than cost of production leading to losses.
In a separate filing, Bajaj Hindusthan informed that the Board of Directors, at its meeting held today, has approved seeking approval of shareholders by way of postal ballot for according authority to Board to borrow a sum not exceeding Rs 7,500 crore.
The shareholders nod would also be taken to give authority to Board for creation of charges on the moveable and immoveable properties of the company in respect of borrowings.
The company would also seeek sharholders approval for issue of further shares by way of QIP, GDR/s, ADR/s and FCCB among others.
Shareholders nod would be taken for "payment of minimum remuneration to Shishir Bajaj, Managing Director, for a period of 3 years out of the present tenure of 5 years with effect from July 1, 2013, subject to approval of Central Government".
Shares of the company closed down by 2.77 per cent to Rs 13.33 apiece in the late afternoon trade on BSE today.
Bajaj Hindusthan, which follows an October-September financial year, has extended the current fiscal by six months. Consequently, its current fiscal will comprise of 18 months ending on March 31, 2014.