ICICI Direct: Dhampur Sugar Reports Sustainable Quarter Earnings; Healthy Cash Flow Generation   
White sugar is displayed in a sack as it is sold in a grocery store in Mumbai, India. (Photographer: Shirish Shete/Bloomberg News)  

ICICI Direct: Dhampur Sugar Reports Sustainable Quarter Earnings; Healthy Cash Flow Generation   

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Dhampur Sugar Mills Ltd. reported strong set of numbers with 15.1% revenue growth led by 20% increase sugar volumes of 2.7 lakh tonnes on the back of higher exports.

The company received additional 58,000 tonnes of export quota after the first round of re-allocation in February 2020. Sugar realisation was flat at Rs 32.2 per kilogram.

Dhampur Sugar crushed approximately 10% higher sugarcane in crushing season 2019-20 with excess sugarcane diverted from gur and khandsari manufacturers as they stopped manufacturing operations by March end due to lockdown imposed across country.

Distillery volumes fell 29.7% to 2.2 crore litre mainly due to lower off take by Oil Marketing Companies in April given constraints of OMCs storage capacity during lockdown.

However, distillery realisation improved due to higher proportion of B heavy ethanol.

Power volumes, tariffs were down 10.6%, 39%, respectively, due to tariff revision by Uttar Pradesh Electricity Regulatory Commission in July 2019.

Operating profit fell 1.4% mainly due to reduction in power tariffs last year. Profit after tax fell 7.3% to Rs 54.2 crore with higher taxation provision.

Click on the attachment to read the full report:

ICICI Direct Dhampur Sugar Q1FY21 Result Update.pdf

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