ICICI Direct: Dalmia Bharat Sugar Reports Strong Q1 Aided By Sugar Exports; Distillery Sales To Perk Up Cash Flows
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ICICI Direct Report
Dalmia Bharat Sugar and Industries Ltd. reported a strong performance with 51% revenue growth on the back of 57.8% growth in sugar sales, 43.7% growth in distillery sales.
The company sold 2.03 lakh tonne (lt) of sugar in Q1, 50% higher compared to corresponding quarter. Higher volumes were aided by 1.0 lakh tonne of export during the quarter.
In total, Dalmia Bharat Sugar has been allocated 1.75 lakh tonne of export quota in 2019-20 sugar season. Of this, it has already exported 1.27 lakh tonne and rest 0.48 lakh tonne would be exported in September quarter.
In domestic sales, the company sold 1.02 lakh tonne sugar (small quantity of March quota would have been sold in Q1).
Strong distillery sales were aided by 17% increase in ethanol volume to 2.3 crore litre. Power sales were down 1.3% to Rs 78.1 crore mainly due to 10% de-growth in power volumes (sold 9 crore units).
Operating profit increased 106.7% to Rs 197 crore with higher sugar and ethanol volumes. Net profit increased 118.7% to Rs 125.9 crore driven by higher operating profits and stable interest cost, depreciation provisioning.
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