Dalmia Bharat Sugar & Industries , a prominent player in the sugar industry, has taken a significant step towards restructuring its shareholder categories. The company has formally applied to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) for the reclassification of Birla Tyres Limited from the 'promoter and promoter group' category to the 'public' category.

Application Details

Dalmia Bharat Sugar submitted applications to both BSE and NSE, seeking their approval for this reclassification. This move follows a series of corporate actions and disclosures:

1. Initial Request: The company received a request from Birla Tyres Limited for reclassification.
2. Board Approval: Dalmia Bharat Sugar's board of directors met and approved Birla Tyres' reclassification request.
3. Exchange Application: The company filed the formal application with the stock exchanges.

Regulatory Compliance

The disclosure and application process aligns with Regulation 31A(8)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation governs the reclassification of promoters as public shareholders, ensuring transparency and proper procedure in such corporate actions.

Implications

If approved, this reclassification would alter the shareholding structure of Dalmia Bharat Sugar & Industries. Birla Tyres Limited, currently categorized under the 'promoter and promoter group', would be reclassified as a public shareholder. This change could potentially impact the company's promoter holding percentage and public float.

Next Steps

The ball is now in the court of BSE and NSE. The exchanges will review Dalmia Bharat Sugar's application and make a decision based on SEBI regulations and their own listing norms. Shareholders and market participants will be keenly watching for the exchanges' response, as it could have implications for the company's ownership structure and potentially its stock market dynamics.

Dalmia Bharat Sugar & Industries continues to keep its stakeholders informed through timely disclosures, demonstrating its commitment to transparency and regulatory compliance. As this process unfolds, investors and market analysts will likely monitor any potential impacts on the company's governance and market perception.

Dalmia Bharat Sugar & Industries Limited (DBSIL) has announced its financial results for the first quarter, revealing a mixed performance with improved sugar net sales realization (NSR) but lower overall profitability.

Financial Highlights

• Revenue from operations stood at ₹942.87 crore, down from ₹960.26 crore in the same quarter last year
• Net profit after tax (PAT) decreased to ₹38.37 crore from ₹54.73 crore in the previous year quarter

Management Changes

• The board appointed Sanjeev Raghunathrao Desai as Unit Head of Ninaidevi Unit for a two-year term
• Desai brings 35 years of experience in managing sugar units and holds a Master's degree in Commerce

Corporate Actions

• The board approved Birla Tyres Limited's request for reclassification from 'Promoter and Promoter Group' category to 'Public' category
• Birla Tyres became a wholly owned subsidiary of Himadri Specialty Chemical Limited effective April 7, 2025, and holds no shares in Dalmia Bharat Sugar

Credit Rating Upgrade

• The company's credit rating was upgraded to CARE AA+ with stable outlook

Segment Performance

Sugar Segment

• Average sugar NSR improved by 5% to ₹39.80/kg

Distillery Segment

• Distillery sales volume increased by 19% YoY to 5.15 crore litres

Management Commentary

Mr. Pankaj Rastogi, Whole-Time Director & CEO of DBSIL, commented on the performance, stating, "Despite lower crushing in Uttar Pradesh and subdued margins in cane-based distilleries, the Company recorded a PAT of ₹38 crores and a turnover of ₹957 crores, driven by higher volumes in grain distilleries and a remarkably higher sugar NSR."

Strategic Focus

The company is committed to improving cane yields and area by leveraging next-generation technologies, including artificial intelligence, as part of its strategic priorities.

Outlook

The company expects a promising sugarcane crop outlook based on predictions of above-normal rainfall with optimal distribution. DBSIL anticipates an increase in the Minimum Selling Price (MSP) of sugar, which is expected to support the industry. The company also noted that a 20% ethanol blending percentage was achieved, in line with the Ethanol Blending targets.

In conclusion, while DBSIL faced some challenges in Q1, the company's improved sugar NSR and strong performance in the distillery segment helped mitigate the impact of lower sugar volumes and reduced profitability. The company remains focused on technological advancements and strategic initiatives to drive future growth.