Dalmia Bharat Sugar shares traded in the red on Monday after the company reported a 9.8 percent YoY (year-on-year) as well as a 27.4 percent QoQ (quarter-on-quarter) decline in its revenue for the June quarter at Rs 834 crore.
At 1 pm, the Dalmia Bharat Sugar stock was quoting at Rs 367.75 apiece, down by Rs 10, or 2.65 percent on the NSE.
The stock has been witnessing consolidation since April 12, up by only 1.05 percent till date. In year-to-date terms, the stock has slided down 6.30 percent.
The financials
In its results for Q1FY24, the company reported a 13.1 percent YoY increase in net profit at Rs 61.3 crore.
EBITDA (earnings-before-interest- taxes-depreciation and ammortisation) in the June quarter was up by 8.7 percent YoY at Rs 118.5 crore. The EBITDA margins for the same period increased by 240 basis points YoY to 14.2 percent.
In Q1FY24, the total sales volume for sugar, the company’s primary revenue generator, declined by 24 percent YoY to 1.27 lakh metric tonnes. Meanwhile, the sales volumes for the distillery segment were up 25 percent YoY at 5.45 crore litres in the quarter under review.
Outlook
In its outlook for the sugar industry, the company expects sugar production to be around 31.8 million metric tonnes for the SS (sugar-season) of 2023-24. This will be a successive decline in the production numbers from 35.8 million metric tonnes in SS 2021-22 and an estimate of 32.8 million metric tonnes for SS 2022-23.
The company expects domestic sugar prices to remain stable.
Dalmia Bharat Sugar, a subsidiary of Dalmia Bharat Group, is primarily engaged in the production of sugar and its by-products. The company owns and operates five sugar manufacturing facilities in Uttar Pradesh and Maharashtra with an installed production capacity of 37 thousand tonne-cane per-day. It also operates four distilleries and five power generation plants. Dalmia Bharat Sugar is a preferred supplier to prominent FMCG players such as Coca-Cola, Pepsico, Dabur, and Mondelez apart from alcohol makers such as United Breweries and Carlsberg.
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