ZENITH International Journal of Multidisciplinary Research
Year : 2019, Volume : 9, Issue : 2
First page : ( 120) Last page : ( 127)
Online ISSN : 2231-5780.

The effect of recovery percentage and capacity utilisation on total net profit of cooperative sugar mills in Tamil Nadu

Dr. Magesh V.

M. Com., M. Phil., Ph. D., Associate Professor, Pg Department of Commerce, Post Graduate Government College, Sector-46, Chandigarh, India

Online published on 2 April, 2019.

Abstract

The two major factors that have substantial influence on profitability are sugar recovery from sugarcane and capacity utilization of sugar plant capacity. This study aims to analyse these aspects of 15 cooperative sugar mills in Tamil Nadu over a period of 10 years and derived relationship between the Profitability, Recovery Percentage and Capacity Utilization. It was found that if capacity utilisation percentage goes up by one standard deviation (which is 0.82%), the total Net Profit goes up by 0.519 standard deviation and if recovery percentage goes up by one standard deviation (which is 18.69%), the total Net Profit goes up by 0.513 standard deviation units. Least Square Method equation derived for the relationship was Net Profit in Lakhs = 282.709809004 * Capacity Utilisation + 6206.52051734 * Recovery-86720.8011087.

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Keywords

Sugar Mill Profitability, Sugar Mill Recovery, Capacity Utilisation, Least Square Method, Regression.

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