The company’s total income stood at Rs 787 crore as on 30 September 2023, registering a growth of 29% YoY, revenues for Q2 FY24 is higher mainly due to increase in sugar realization by 5%, Sugar sales volume by 3% & higher distillery sales volume by 52% and better distillery realization by 8%.

The firm reported profit before tax of Rs 74 crore in Q2 FY24, steeply higher than Rs 17 crore recorded in the corresponding quarter previous year.

EBITDA soared 202% to Rs 121 crore during the quarter as against Rs 40 crore reported in Q2 FY23. EBITDA margin improved to 15% in Q2 FY24 as compared to 7% recorded in the corresponding quarter previous year.

During the quarter, total sales volume increased 3% to 1.14 Lakh MT as compared with 1.11 Lakh MT in corresponding quarter last year. As on 30 September 2023, sugar inventory stood at 0.57 Lac MT and valued at Rs 33.5 per Kg.

The firm stated that it has started crushing operations for SS 23-24 in 4 out of 5 sugar plants in November 2023. All 3 plants in UP and 1 in Maharashtra commenced operations.

On the outlook front, as per Indian Sugar Mills Association (ISMA) reports, gross sugar production estimates before diversion into ethanol for SS 23-24 is expected to be lower at 33.7 million MT mainly due to lower production in Maharashtra and Karnataka due to agro climatic conditions. Domestic sugar prices have firmed-up in last 2-3 months and are expected to remain so in future also.

Meanwhile, the company’s board has approved to set up a green field sugar plant in UP for a capacity of up to 8000TCD cane crush, 20MW cogen and 60KLPD distillery to be set up in phased manner commensurate with the cane development activities in the area.

For the first phase of 4000TCD cane crushing capacity with 10 MW cogen (to be operational from SS 26-27), the board has sanctioned a capital outlay of Rs 350 crore which, will get financed partly through internal accruals and partly through debts.

Earlier on 5 April 2023, the company had informed about the setting up of grain-based distillery at Nigohi Unit of the company with a capacity of 250 KLPD at a capital expenditure of Rs 400 crore. However, due to lack of clarity on grain availability, the company has decided to put the same on hold.

Dalmia Bharat Sugar and Industries is an integrated leading sugar manufacturer, engaged in manufacturing sugar and downstream products like ethanol, other distillery products and power.

The scrip hit a 52-week high at Rs 490.05 in intraday today.