Shree Renuka Sugars has delivered an impressive financial turnaround in the third quarter, showcasing remarkable improvement across key performance metrics. The company achieved a substantial EBITDA gain of ₹2.5 billion compared to a loss of ₹15 million in the corresponding quarter of the previous year, while also significantly reducing its consolidated net loss.

Outstanding EBITDA Performance

The sugar manufacturer demonstrated exceptional operational efficiency with a dramatic EBITDA improvement. The company achieved an EBITDA margin of 10.95% for the quarter, reflecting strong cost management and operational optimization.

Comprehensive Financial Results

The company's overall financial performance showed substantial improvement across multiple parameters, with both profitability metrics and operational efficiency demonstrating positive trends.

Loss Reduction Achievement

Shree Renuka Sugars achieved a remarkable 81% reduction in its consolidated net loss, bringing it down to ₹383 million from ₹2.04 billion in the corresponding quarter of the previous year. This substantial improvement of approximately ₹1.66 billion in loss reduction, combined with the strong EBITDA performance, indicates enhanced operational efficiency and improved cost management strategies.

Revenue and Margin Analysis

Despite experiencing a revenue decline to ₹22.7 billion from ₹26 billion in the same period last year (a decrease of 12.7%), the company successfully improved its profitability metrics. The achievement of a 10.95% EBITDA margin demonstrates the company's ability to optimize costs and improve operational efficiency even in a challenging revenue environment.

Key Performance Highlights

The quarterly results present a strong operational turnaround story:

• EBITDA Turnaround: Massive improvement from ₹15 million loss to ₹2.5 billion gain
• Margin Expansion: Achieved 10.95% EBITDA margin
• Loss Management: 81% reduction in consolidated net loss
• Operational Efficiency: Strong cost optimization despite revenue headwinds

The company's ability to deliver such substantial improvements in EBITDA and loss metrics while managing revenue challenges reflects successful implementation of operational control measures and strategic cost optimization initiatives during the quarter.

Shree Renuka Sugars Limited , a prominent player in the sugar industry, has successfully completed the acquisition of additional shares in its wholly-owned subsidiary, KBK Chem-Engineering Private Limited. This strategic move involves a significant financial transaction and restructuring of inter-company loans.

Transaction Details

The Board of Directors of KBK Chem-Engineering approved the allotment of new equity shares to its parent company, Shree Renuka Sugars. Here are the key details of the transaction:

Strategic Implications

This share acquisition is noteworthy for several reasons:

1. Loan Conversion: The transaction involves the conversion of an existing loan that Shree Renuka Sugars had previously extended to KBK Chem-Engineering. This move effectively transforms debt into equity, potentially improving the subsidiary's balance sheet.

2. Strengthening Ownership: While KBK Chem-Engineering was already a wholly-owned subsidiary, this additional investment reinforces Shree Renuka Sugars' commitment to its subsidiary's operations and future growth.

3. Capital Infusion: The Rs. 573.65 million investment provides KBK Chem-Engineering with fresh capital, which could be utilized for various purposes such as expansion, research and development, or operational improvements.

Regulatory Compliance

Shree Renuka Sugars has duly informed the stock exchanges about this development, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This corporate action underscores Shree Renuka Sugars' strategic focus on strengthening its group structure and optimizing its investments in subsidiaries.