Chennai: EID Parry Limited, part of the Chennai-based Murugappa Group has decided to revoke its decision to buy back its shares.
The company had earlier announced its plans to buy up to 25 per cent of its Rs2 face value shares at Rs.160 per share and even obtained the shareholders consent through postal ballot in December 2007.
According to a company executive, the buy back decision was taken as the company had some free cash, but in view of the current market sentiments, it had decided to scrap the plans
Yesterday the scrip had opened at Rs180, closing at Rs177.
The company closed the third quarter ended 31st December2007 with a turnover of Rs197.28 crore and a net loss of Rs23.33 crore.
According to the company the low domestic and international prices for sugar and rupee appreciation making exports unattractive and high inventory carrying cost have resulted in company posting a loss.
During the quarter, the company crushed 5.16-lakh tonnes of cane compared to 6.11-lakh tonnes in the corresponding period of 2006-07; with the overall production of sugar being 43784 MT (49827 MT). The average sugar realisation per MT for the quarter was Rs12,535 compared to Rs15,985 for the corresponding period of 2006-07. During the quarter, the company exported 83688 MT, including 52691 M.T. of raw sugar.