After reporting a 50 percent decline in net profit, Dwarikesh Sugar on Friday said the company plans to increase ethanol capacity to 1 lakh litre per day.

In an interview to CNBC-TV18, Vijay Banka, managing director, said Q2 is a challenging quarter for sugar industry as it’s an offseason quarter.

“Additional, we have had to face triple whammy of lower sugar prices, lower sugar sales and abysmally low realisation on sale of molasses. These three factors combined pulled down our profitability,” Banka said.

On ethanol capacity, Banka said company can produce 30,000 litre per day, “Ethanol realisation has been good and we have sold a lot of ethanol in last two quarters which is why we have seen this segment showing impressive results."