EID Parry , one of India's largest sugar manufacturers, has announced its financial results for the first quarter, showcasing significant growth in both revenue and profitability.

Consolidated Performance Highlights

The company reported a robust 29% increase in consolidated revenue from operations, reaching Rs. 8,724.00 crore compared to Rs. 6,747.00 crore in the corresponding quarter of the previous year. This substantial growth was accompanied by a remarkable 70% surge in earnings before interest, tax, depreciation, and amortization (EBITDA), which stood at Rs. 895.00 crore, up from Rs. 528.00 crore in the same period last year.

EID Parry's consolidated profit after tax and non-controlling interest saw an impressive rise, more than doubling to Rs. 246.00 crore from Rs. 91.00 crore in the previous year's quarter.

Standalone Performance

On a standalone basis, the company's revenue from operations showed a marginal increase to Rs. 760.00 crore, compared to Rs. 751.00 crore in the corresponding quarter. The standalone EBITDA turned positive at Rs. 14.00 crore, a significant improvement from the loss of Rs. 29.00 crore in the previous year's quarter. The standalone loss after tax narrowed to Rs. 28.00 crore from Rs. 79.00 crore in the same period last year.

Segment-wise Performance

Sugar Division

The consolidated sugar operations, including the refinery business, reported a reduced loss before interest and tax of Rs. 30.00 crore, compared to a loss of Rs. 55.00 crore in the corresponding quarter of the previous year.

Farm Inputs Division

The farm inputs operations showed strong growth, with profit before interest and tax increasing to Rs. 741.00 crore from Rs. 494.00 crore in the same quarter last year.

Nutraceuticals Division

The nutraceuticals division faced challenges, registering a loss before interest and tax of Rs. 10.00 crore, compared to a profit of Rs. 1.00 crore in the previous year's quarter.

Management Commentary

Muthiah Murugappan, Whole-time Director and Chief Executive Officer, commented on the standalone results:

"The sugar segment revenues decreased by 14% to Rs. 347.00 crore due to lower release quota. However, the segment's loss reduced to Rs. 49.00 crore from Rs. 59.00 crore, benefiting from higher cane volume and better realization, partially offset by lower recoveries and higher cane cost."

He added, "The distillery segment saw a 12% growth in revenues to Rs. 296.00 crore, with profits increasing to Rs. 20.00 crore from Rs. 13.00 crore, driven by enhanced capacity utilization and cost optimization."

Consumer Products and Nutraceuticals

The Consumer Products Group (CPG) experienced an 11% decline in turnover to Rs. 192.00 crore, primarily due to lower release quota for sweeteners. However, the staples segment showed promise with a 33% growth.

The nutraceuticals segment faced headwinds with revenues declining by 29% to Rs. 5.94 crore, though losses were contained at Rs. 0.20 crore through cost optimization efforts.

Strategic Developments

EID Parry is expanding its presence in the Fast Moving Consumer Goods (FMCG) segment by introducing a premium range of super grains, including millets, dals, and rice. This move aligns with the company's vision of transforming from a sugar enterprise into a comprehensive Food, Nutrition, and Bioenergy establishment.

The company continues to focus on augmenting distillery capacities and maximizing ethanol volumes to capitalize on the Ethanol Blending Program (EBP) opportunity.

With these results, EID Parry demonstrates resilience in a challenging market environment, leveraging its diversified portfolio to drive growth and profitability across segments.

EID Parry has reported a significant increase in its financial performance for the quarter, with consolidated net profit nearly tripling year-over-year.

Financial Highlights

• Consolidated net profit rose to ₹246.30 crore, up from ₹91.30 crore in the same quarter last year
• Revenue from operations grew 29% to ₹8,723.70 crore
• Operating profit surged 67% to ₹806.00 crore
• Operating margins expanded to 9.20% from 7.20%

Segment Performance

Farm Inputs Division

• Primary growth driver
• Profit before interest and tax reached ₹741.00 crore, up from ₹494.00 crore

Sugar Operations

• Narrowed loss to ₹30.00 crore from ₹55.00 crore loss last year

Nutraceuticals

• Reported a loss of ₹10.00 crore compared to a marginal profit of ₹1.00 crore earlier

Strategic Initiatives

EID Parry has launched a premium range of super grains including millets, dals, and rice under the branding 'Better Grains, Better Health' to enter the FMCG segment. This move signifies the company's efforts to diversify its product portfolio and tap into the growing health-conscious consumer market.

Market Response

Following the results announcement, EID Parry's shares rose 1.40% to ₹1,212.10, reflecting positive investor sentiment towards the company's strong quarterly performance.

Conclusion

EID Parry's robust performance in the farm inputs division and strategic expansion into the FMCG segment demonstrate the company's effective management and adaptability in a dynamic market environment. The significant growth in core segments, coupled with efforts to narrow losses in sugar operations, positions the company well for the future.