EID Parry , a leading player in the sugar industry, has reported mixed results for the first quarter of the fiscal year. The company faced challenges in its sugar segment but saw improvements in its distillery operations.

Sugar Segment Performance

The sugar segment experienced a 14% decline in revenue, dropping to INR 347.00 crores from INR 404.00 crores in the same quarter last year. This decrease was primarily attributed to lower release quota from the Department of Food and Public Distribution. Despite the revenue decline, the company crushed 2.11 lakh metric tons of cane, an increase from 1.93 lakh metric tons in the previous year. However, recovery rates fell to 8.02% from 8.6%.

Sugar sales volume decreased to 84,000 metric tons from 1.05 lakh metric tons, although the average selling price improved to INR 41.99 from INR 38.60 per kg. The company is currently holding an inventory of 1.2 lakh metric tons of sugar, valued at an average of INR 37.00 per kg.

Consumer Products Group

The Consumer Product Group saw an 11% decline in revenue to INR 192.00 crores, mainly due to lower sweetener category quota. However, this was partially offset by a 33% growth in the staples segment. The company is focusing on expanding its distribution network and increasing brand equity, particularly in the value-added browns category for sweeteners.

Distillery Operations

Distillery operations showed positive performance with sales of 413 lakh litres compared to 390 lakh litres in the previous year. The realization improved to INR 67.59 per litre from INR 64.31. Consequently, revenue from the distillery segment increased to INR 296.00 crores from INR 263.00 crores.

Refinery Subsidiary

The refinery subsidiary turned profitable with a Profit Before Tax (PBT) of INR 67.00 lakhs, compared to a loss of INR 6.79 crores in the same quarter last year. The operational revenue for the refinery was INR 908.00 crores, down from INR 1,213.00 crores in the previous year.

Management Outlook

Management highlighted good monsoon conditions supporting cane crop prospects. The company is currently in a consolidation phase after completing ethanol capacity expansion. Mr. Muthiah Murugappan, Whole-Time Director, stated that the focus on biofuels and bioenergy space will continue, with potential opportunities in sustainable aviation fuel being explored, subject to policy developments.

Financial Position

The company reported long-term loans of INR 200.00 crores to be repaid to the parent company. Short-term loans increased to INR 461.00 crores from INR 220.00 crores in the corresponding quarter of the previous year, primarily due to increased working capital requirements for molasses sourcing and the growing Consumer Products Group business.

EID Parry remains committed to its growth strategy in the Consumer Products division and is exploring opportunities to expand its product portfolio and distribution network. The company's management expressed optimism about the upcoming sugar season, expecting marginally positive upside in Karnataka crushing while Tamil Nadu is expected to remain neutral.

As the sugar industry navigates through policy changes and market dynamics, EID Parry continues to adapt its strategies to maintain its position in the market while exploring new growth avenues in the biofuel and consumer products sectors.

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.