Sakthi Sugars Reports Strong Q1 Performance, Appoints New Independent Director
Sakthi Sugars Limited announced robust Q1 financial results with revenue from operations at Rs. 92,854.06 lakhs and profit at Rs. 7,409.55 lakhs. The company operates in four segments: Sugar, Industrial Alcohol, Power, and Soya Products. Corporate governance updates include the appointment of Smt. Susheela Balakrishnan as an Independent Director, scheduling of the 63rd AGM, and recommendations for Secretarial and Cost Auditors. The auditors qualified their report regarding Rs. 25,219.69 lakhs of interest receivable from an erstwhile associate company, but the Board remains confident of a favorable outcome.
*this image is generated using AI for illustrative purposes only.
Sakthi Sugars Limited , a prominent player in the sugar industry, has announced robust financial results for the first quarter ended June 30, alongside significant corporate governance updates.
Financial Highlights
The company reported a substantial increase in revenue and profitability for Q1. Here's a breakdown of the key financial metrics:
| Particulars | Q1 (Rs. in Lakhs) |
|---|---|
| Revenue from Operations | 92,854.06 |
| Profit for the Period | 7,409.55 |
| Basic Earnings Per Share (Rs) | 6.23 |
Segment-wise Performance
Sakthi Sugars operates across four segments, each contributing significantly to the company's revenue:
- Sugar: Rs. 24,727.73 lakhs
- Industrial Alcohol: Rs. 16,926.95 lakhs
- Power: Rs. 4,711.77 lakhs
- Soya Products: Rs. 1,121.23 lakhs
Corporate Governance Updates
The Board of Directors has made several key decisions to strengthen the company's governance structure:
Appointment of Independent Director: Smt. Susheela Balakrishnan has been appointed as an Additional and Independent Director for a term of five consecutive years, effective August 13, subject to shareholder approval. Smt. Balakrishnan brings 40 years of professional experience as a Fellow Member of the Institute of Chartered Accountants of India.
Annual General Meeting: The company's 63rd Annual General Meeting is scheduled for September 25, to be held via video conferencing.
Secretarial Auditor Appointment: The Board has recommended the appointment of Sri. R. Dhanasekaran as Secretarial Auditor for a five-year term, subject to shareholder approval.
Cost Auditors: STR & Associates have been approved as Cost Auditors for the upcoming financial year.
Auditor's Qualification
The company's auditors, P.N. Raghavendra Rao & Co., have qualified their report regarding Rs. 25,219.69 lakhs of interest receivable from an erstwhile associate company. The auditors cited an inability to determine the expected credit loss due to ongoing legal proceedings and lack of clear information on the realisability of the interest receivable.
In response, the Board of Directors stated that the company is confident of obtaining a favorable award and therefore has not provided for expected credit loss.
Outlook
Despite the auditor's qualification, Sakthi Sugars' strong Q1 performance across all its business segments indicates a positive trajectory for the company. The appointment of a new independent director and other governance measures reflect the company's commitment to maintaining robust corporate practices.
Investors and stakeholders will be keenly watching how Sakthi Sugars capitalizes on this momentum in the coming quarters, particularly in light of the ongoing legal proceedings mentioned in the auditor's report.
Historical Stock Returns for Sakthi Sugars
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.83% | +0.62% | +2.08% | -3.92% | -40.56% | +173.58% |
19
