Q2 & H1 FY25: Dwarikesh Sugar announces financial results
Dwarikesh Sugar Industries Ltd. reported a loss before tax of ₹36.04 crore and a loss after tax of ₹24 crore for Q2 FY25, contrasting with profits in the same quarter of the previous year. India’s 2024-25 sugar production is estimated at 33.3 million tons, though diversion to ethanol may reduce output to around 29 million tons. The government’s recent easing of restrictions on cane juice, syrup, and B-heavy molasses for ethanol may support this shift. Resumption of sugar exports could also be considered based on production updates.
Dwarikesh Sugar Industries Ltd., yesterday announced its unaudited financial results for the quarter and six months ended September 30, 2024.
In Q2 FY25, the company reported loss before tax (LBT) of Rs. 36.04 crore and loss after tax (LAT) of Rs. 24.00 crore as compared to PBT of Rs. 14.93 crore and PAT of Rs. 10.26 crore reported during Q2 FY24.
Sugar production for the 2023-24 season is pegged at around 32 million tons, after factoring for diversion of around 2 million tons for ethanol production. According to the Indian Sugar & Bio-energy Manufacturers Association (ISMA), gross sugar production for the 2024-25 season is anticipated to be around 33.3 million tons. However, these forecasts are subject to change as conditions evolve, and more accurate predictions are expected in the coming months as industry gain clarity on crop yields and recoveries.
According to the company, the government has lifted the embargo on using cane juice / syrup, and B-heavy molasses as feedstock for ethanol production. This change could lead to a diversion of up to 4 million tons of sugar for ethanol, potentially bringing net sugar production down to over 29 million tons. There is also an opportunity for the resumption of sugar exports, as stock levels at the beginning of the 2024-25 season appear comfortable. Perhaps the Government may consider this option only when clearer estimates of sugar production become available.
Source Link : https://www.chinimandi.com/q2-h1-fy25-dwarikesh-sugar-announces-financial-results/
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