Dhampure Speciality Sugars Reports Mixed Q1 Results: Consolidated Profit at ₹48.87 Lakh, Standalone Loss at ₹15.27 Lakh

Dhampure Speciality Sugars Limited has announced its financial results for the first quarter, revealing a mixed performance across its consolidated and standalone operations.

Consolidated Performance

On a consolidated basis, the company reported a net profit of ₹48.87 lakh, compared to ₹55.74 lakh in the same quarter of the previous year. Despite the slight decline in profit, the company's total income saw a significant increase, rising to ₹1,268.09 lakh from ₹710.08 lakh year-over-year.

The consolidated earnings per share (EPS) for the quarter stood at ₹0.59, down from ₹0.70 in the corresponding quarter last year.

Standalone Results

The standalone results painted a different picture, with the company reporting a net loss of ₹15.27 lakh, in contrast to a profit of ₹56.81 lakh in the previous year's quarter. The standalone EPS turned negative at ₹-0.18 compared to ₹0.72 in the same period last year.

Revenue Growth and Expenses

Dhampure Speciality Sugars saw substantial growth in its revenue. The consolidated total income for the quarter reached ₹1,268.09 lakh, marking a 78.60% increase from ₹710.08 lakh in the same period last year.

However, this growth in revenue was accompanied by a significant rise in expenses. Total expenses on a consolidated basis increased to ₹1,233.97 lakh from ₹637.80 lakh year-over-year, representing a 93.50% jump.

Key Financial Highlights:

Exceptional Item

The company recorded an exceptional loss of ₹23 lakh during the quarter, which impacted the overall profitability.

Management Commentary

In its notes to the financial results, the company stated, "Sugar & Jaggery being a seasonal industry, the performance of the quarter may not be representative of the annual performance of the Company." This highlights the cyclical nature of the business and suggests that quarterly results should be viewed in the context of full-year performance.

Board Meeting and Approvals

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on August 4. The company also disclosed that these results are being published in newspapers and are available on the company's website.

Conclusion

While Dhampure Speciality Sugars Limited has shown strong revenue growth, the increase in expenses and the standalone loss indicate challenges in maintaining profitability. The seasonal nature of the sugar and jaggery industry adds complexity to interpreting quarterly results, and stakeholders may need to consider full-year performance for a more comprehensive assessment of the company's financial health.