Prudential Sugar Corporation Limited , a company traditionally known for its sugar business, is making a significant move into the electric vehicle (EV) sector. The company has announced a strategic investment in Senatla Innovative EV Components Private Limited, a manufacturer of electric two-wheelers and three-wheelers.

Key Details of the Acquisition

• Prudential Sugar Corporation has signed a Memorandum of Understanding (MoU) to acquire a 76% equity stake in Senatla Innovative EV Components Private Limited.
• The investment is valued at approximately Rs 4.00 crores.
• The acquisition will be made through the subscription of 31,66,666 new equity shares at Rs 12.64 per share.
• The payment is scheduled to be made in three tranches, to be completed by December 31, 2025.

About Senatla Innovative EV Components

Senatla Innovative EV Components Private Limited is currently engaged in the manufacturing and sale of electric two-wheelers and three-wheelers. The company has established a sales and distribution network in Telangana, Andhra Pradesh, and Tamil Nadu, with plans for further expansion.

Financial Projections

Senatla Innovative has set ambitious growth targets following this investment:

• Projected monthly turnover of Rs 5.00 crores by March 2026
• Anticipated monthly turnover of Rs 10.00-15.00 crores by March 2027

Ownership Structure Post-Acquisition

Upon completion of the acquisition:

• Prudential Sugar Corporation Limited will hold a 76% stake in Senatla Innovative
• The original promoter, Senatla EV Products Private Limited, will retain a 24% ownership

Strategic Implications

This move marks a significant diversification for Prudential Sugar Corporation, venturing into the rapidly growing electric vehicle market. The investment aligns with the increasing focus on sustainable transportation solutions and could potentially open new revenue streams for the company.

Due Diligence and Completion Timeline

• Due diligence is scheduled to be completed by September 30, 2025
• The first tranche of payment is expected by October 31, 2025
• The second tranche is due by November 30, 2025
• The final payment and completion of the acquisition are set for December 31, 2025

This strategic investment by Prudential Sugar Corporation Limited represents a bold step into the EV sector, potentially positioning the company to capitalize on the growing demand for electric vehicles in India.

Prudential Sugar Corporation Limited, a prominent player in the sugar industry, has announced its unaudited financial results for the first quarter. The company's performance presents a mixed picture, with a significant decline in revenue but a notable increase in profitability.

Revenue Decline

The standalone revenue for Q1 stood at ₹838.43 crore, marking a substantial decrease of 76% compared to ₹3,493.96 crore reported in the same quarter of the previous year. This considerable drop in revenue highlights potential challenges in the company's core operations or market conditions affecting the sugar industry.

Profit Growth

Despite the revenue setback, Prudential Sugar Corporation has managed to significantly improve its bottom line. The company reported a standalone net profit after tax of ₹128.57 crore for Q1, representing a remarkable increase of 638% from ₹17.42 crore in the corresponding quarter of the previous year.

Consolidated Performance

On a consolidated basis, the company's total revenue for Q1 was ₹854.59 crore, with a net profit of ₹140.07 crore. These figures suggest that the company's subsidiaries have contributed positively to the overall financial performance.

Financial Highlights

Board Meeting and Compliance

The company's Board of Directors convened to approve the unaudited financial statements for Q1. During this meeting, the Board also acknowledged an advisory letter from the National Stock Exchange (NSE) regarding non-compliance with certain SEBI regulations. Prudential Sugar Corporation has committed to exercising due diligence to ensure prompt compliance in the future and avoid any adverse remarks from stock exchanges.

Auditor's Review

The statutory auditors of Prudential Sugar Corporation Limited have conducted a limited review of the unaudited financial results for Q1, as per regulatory requirements.

While the significant revenue decline raises concerns about the company's market position and operational challenges, the substantial increase in profitability suggests effective cost management and possibly improved operational efficiency. Investors and stakeholders will likely be keen to understand the factors driving this divergent performance in revenue and profitability as Prudential Sugar Corporation navigates through the current fiscal year.