Sanstar Limited , a leading producer of maize-based specialty products in India, has reported a significant decline in its financial performance for the first quarter. The company faced challenges due to a planned maintenance shutdown and market pressures, resulting in lower revenue and profitability.

Financial Performance

Sanstar's revenue from operations for Q1 stood at ₹1,689.00 million, marking a 44.2% decrease from ₹3,027.00 million in the same quarter of the previous year. The company's gross profit also saw a substantial decline, falling to ₹404.00 million with a margin of 23.9%, compared to ₹801.00 million and a 26.5% margin in the previous year.

The financial results were further impacted by negative EBITDA of ₹17.00 million and a negative Profit After Tax (PAT) of ₹3.00 million for the quarter. Despite these challenges, the company managed to generate a cash profit of ₹20.00 million.

Factors Affecting Performance

The company attributed the decline in performance to two primary factors:

1. Annual Maintenance Shutdown: Sanstar undertook a 24-day annual maintenance program for its boilers at both plants. This resulted in the non-operation of facilities with a combined capacity of 1,100 Tonnes Per Day (TPD), leading to lower production volumes and no revenue generation for nearly a month.

2. Market Pressures: The native starch segment faced pricing pressure due to increased Chinese exports into Southeast Asia. This led to excess supply and lower pricing in the Indian market.

Expansion Plans

Despite the current challenges, Sanstar is moving forward with its expansion plans:

• The Dhule facility capacity is being increased from 750 TPD to 1,750 TPD.
• Native starch manufacturing is scheduled to be commissioned in December 2025.
• The derivatives facility is expected to be operational by March 2026.
• Upon completion, Sanstar's total capacity will grow from 1,100 TPD to 2,100 TPD.

This expansion will position Sanstar as India's second-largest producer of maize-based specialty products and ingredient solutions.

Management Commentary

Mr. Gouthamchand Chowdhary, Chairman and Managing Director of Sanstar Limited, commented on the results: "With the maintenance program now behind us, operations have been normalized and no further scheduled downtime and production loss is expected over the next three quarters. Looking ahead, we remain optimistic about the operating environment as global trade headwinds are expected to ease."

He also noted that China's approach to exports is expected to normalize, potentially leading to a recovery in native starch pricing in India. Additionally, the company anticipates a positive outlook for maize, its key raw material, with projections of higher cultivated areas and government releases of maize inventories.

As Sanstar navigates through these challenges and completes its expansion plans, the company aims to capitalize on an improving market environment and drive sustainable growth in the coming quarters.

SANSTAR , a prominent player in its industry, has released its financial results for the fourth quarter, revealing a significant decline in both revenue and profit compared to the same period last year.

Financial Highlights

Performance Analysis

SANSTAR experienced a substantial drop in its quarterly performance, with net profit plummeting by approximately 66% year-over-year. The company's net profit for the quarter stood at ₹55.00 crore, a sharp decrease from the ₹162.00 crore reported in the same quarter of the previous year.

The revenue figures also showed a decline, albeit less severe than the profit reduction. SANSTAR reported a revenue of ₹230.00 crore for the quarter, down from ₹260.00 crore in the corresponding period last year, representing a decrease of about 11.54%.

Market Implications

The significant drop in both revenue and profit may raise concerns among investors and market analysts about the company's current business environment and operational efficiency. Factors contributing to this decline could include market challenges, increased competition, or internal operational issues.

As SANSTAR navigates through these challenging times, stakeholders will likely be keen to understand the company's strategies for improving performance in the coming quarters. The management's outlook and any forward-looking statements in the detailed financial report could provide valuable insights into the company's plans for recovery and growth.

Investors and market watchers are advised to keep a close eye on SANSTAR's upcoming announcements and any potential measures the company might implement to address the decline in financial performance.