ICICI Direct: Dwarikesh Sugar Posts Strong Quarter; Scale Up In Distillery Operations To Aid Earnings

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.Dwarikesh Sugar Industries Ltd. reported sturdy results with 16.2% revenue growth aided by higher sugar and distillery segment sales. Sugar sales was up by 13.1% driven by higher sugar exports and higher sale of molasses given the company has crushed record sugarcane this season.However, sugar realisation was down by 1.1% to Rs 31.3 per kilogram. Sugar sales volumes increased by 4% to Rs 1.25 lakh tonnes in Q1 FY21 vis-a-vis Q1 FY20 which included 0.6 lakh tonnes of exports.Distillery segment sales increased by 70.9% to Rs 20.8 crore driven by higher volumes as company commissioned new 100 kilo litres per day distillery. Though distillery volume was higher by 57% to 0.44 crore litres, it is much lower than the capacity of producing 1.0 crore litres every quarter.We believe lower offtake by Oil Marketing Companies, due to their constraints of storage, impacted ethanol sales. Power segment sales volumes increased from 2.7 crore units to Rs 4.4 crore units as company crushed 20% higher sugarcane in current season.Operating profit was higher by 38% to Rs 50.2 crore with higher sugar and ethanol sales. Net profit declined by 9.2% to Rs 18.1 crore due to tax reversal in base quarter.Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: Dwarikesh Sugar Posts Strong Quarter; Scale Up In Distillery Operations To Aid Earnings

ICICI Direct: Dwarikesh Sugar Posts Strong Quarter; Scale Up In Distillery Operations To Aid Earnings

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