August 11, 2016 / 16:20 IST
Axis Direct's research report on EID Parry IndiaEID Parry reported Q1FY17 PAT of Rs 253 mn vs. loss of Rs 1.3 bn in Q1FY16, a swing of Rs 1.6 bn YoY. Crushing was lower at 540 K tonne, as two units in Karnataka saw early closure; however, sugar price remained firm and averaged at Rs 32/kg for the quarter. Power exports were lower at Rs 98 mn (vs. Rs 130 mn in Q1FY16) due to decline in demand. This could improve going forward, as Sec.11 of the State Electricity Act in Karnataka and Tamil Nadu which mandated IPPs to supply only to the state grid (instead of exporting it) has been revoked. Refinery broke even during the quarter. Bio-products division posted EBIT of Rs 40 mn vs.Rs 10 mn loss last year.
We continue to believe tailwinds exist going ahead. Maintain BUY with revised SOTP-based TP of Rs 320.
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