Dec. 2005 Quarter Results: Sales rise 22.05 % to Rs.40.37 Crore, Net Profit at Rs 7.63 CroreMumbai: The Board of Directors of Dwarikesh Sugar Industries Limited, an integrated sugar conglomerate, approved today their unaudited results for Q1SY06 in which the company has reported a 22.05% growth in Sales to Rs 40.37Crore for the first quarter ended December 2005. The rise in Sales was as a result of better realisation in sugar prices. Net profit rose to Rs 7.63 Crore up by 34.85 %. EPS for the quarter ended December, 2005 was at Rs 5.92 on the post GDR capital.

The Company recently commenced crushing at its Green Field Project of 7500 tons crushing per day (TCD) at Bahadarpur in Bijnor District, Uttar Pradesh. With the setting up of Bahadarpur plant, the Company's combined capacity has moved up to 14000 TCD and the co-generation capacity has moved up from 17MW to 26MW. The crushing at this new capacity will take the sales and the net profit to a new high in the forthcoming quarters as the commercial production at the new plant started in January 2006.

Mr G R Morarka, Chairman and Managing Director, Dwarikesh Sugar Industries said, "The commencement of the new green field project has enabled us to more than double our capacity, the full benefits of this expansion will accrue during the current financial year. Our consistent strategy to maintain growth and achieve efficiency at all levels has started reaping benefits for our stakeholders."

Our recent GDR issue reflects confidence among the international investor community. We expect the sugar prices to remain buoyant which should result in better realisation and enhanced profitability." He further added.

DSIL has successfully raised US$ 12 Million through the issue of 3,000,000 Global Depository Receipts (GDRs). The GDRs are listed on the Luxembourg Stock Exchange. Each GDR represents one underlying equity share in the Company. The GDR was priced at US$ 4 per GDR.

For the year ended September 2005, the company had gross sales of Rs.164.25 Crores (Growth of 7.26%). Profit after tax was Rs.26.60 Crores as against Rs. 9.76 Crore for the earlier financial year (Growth of 172.52%). EPS for the year ended September, 2005, was Rs.23.17.

About Dwarikesh Sugar

Dwarikesh Sugar Industries Ltd made a successful IPO in November, 2004 raising Rs. 32.50 crores. The company's IPO of 50 lacs shares at a premium of Rs 55 per share (Face value Rs. 10) was oversubscribed 23 times. Prior to the commencement of the Greenfield project of 7500 TCD and 9 MW co-generation power, the company had a crushing capacity of 6,500 TCD, 17 MW Co-generation power unit (expanded from 9 MW) and a distillery with capacity of 30,000 Litres per day. The Company exports around 8 MW to UPPCL under a long term Power Purchase Agreement. With recent issue of 3,000,000 GDR at USD 4 Each, company is now ready to expand its sugar production capacities further. Dwarikesh is eying an acquisition and also geared up for any Greenfield project opportunity.



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