Shares of Dhampur Bio Organics tumbled 4 percent in morning trade on July 26 after the company’s net profit dropped 84 percent on QoQ basis to Rs 12.66 crore.
Its consolidated net profit stood at Rs 80.20 crore in the quarter ended March 2023.
However, the Q1 FY24 net profit climbed 53 percent compared to Rs 8.25 crore in the year-ago quarter.
At 10.30 am, shares of Dhampur Bio Organics were trading 4.03 percent down at Rs 168.95 on the BSE.
The company’s revenue from operations for Q1 FY24 stood at Rs 676.26 crore, up 36 percent from Rs 495.70 crore in the corresponding period of the previous year.
Sequentially, the revenue dropped 26 percent compared to Rs 917.48 crore in Q4 FY23.
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In a post-market hours filing on July 25, the company also said its board has approved expansion in crushing capacity of sugar division at Unit Asmoli, Uttar Pradesh, by 3,500 Tonnes Crushing per day (TCD), that is from 9,000 TCD to 12,500 TCD.
This will entail an investment of Rs 60 crore, of which 25 percent will be funded from internal accruals and the rest from bank financing.
“With the proposed expansion, the total capacity of the Company will stand augmented from 26,000 TCD to 29,500 TCD,” it added.
The board also approved installation of a greenfield distillery at Meerganj unit having capacity of 200,000 LPD (expandable upto 300,000 LPD).
This will entail an investment of Rs 240 crore, of which 25 percent will be funded from internal accruals and the rest 75 percent from bank financing.
Dhampur Bio Organics is an integrated sugarcane processing company. It manufactures refined and raw sugar, bio-fuels, biomass based renewable power and other related products.
Shares of the company are down 19 percent on YTD basis, and are almost unchanged over the past 1-year.
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