- Standalone Revenue from Operations: INR751 crore, an increase of 7.58% from INR698 crore in the corresponding quarter of the previous year.
- EBITDA: Loss of INR8.59 crore, compared to a loss of INR14.60 crore in the corresponding quarter of the previous year.
- Standalone Loss After Tax: INR78.59 crore, compared to a loss of INR45.77 crore in the corresponding quarter of the previous year.
- Sugar Sales: Reduced from 1.21 lakh metric tons to 1.05 lakh metric tons.
- Alcohol Sales: Increased from 3.4 crore liters to 3.9 crore liters.
- Sugar Crushing: 1.90 lakh metric tons, down from 4.01 lakh metric tons in the corresponding quarter of the previous year.
- Sugar Recovery Rate: 8.6%, down from 9.0% in the corresponding quarter of the previous year.
- Sugar Production: 16,000 metric tons, down from 33,000 metric tons in the corresponding quarter of the previous year.
- Sugar Revenue: INR251 crore, down from INR336 crore in the corresponding quarter of the previous year.
- Consumer Product Group Turnover: INR4,216 crore, up from INR129 crore, a growth of 67%.
- Power Generation: 307 lakh units, down from 520 lakh units in the corresponding quarter of the previous year.
- Power Exports: 170 lakh units, down from 240 lakh units in the corresponding quarter of the previous year.
- Distillery Operations Revenue: INR263 crore, down from INR298 crore in the corresponding quarter of the previous year.
- Refinery Operations Revenue: INR1,213 crore, up significantly from INR6.8 crore in the corresponding quarter of the previous year.
- Refinery Sugar Production: 1.6 lakh metric tons, up from 1.3 lakh metric tons in the corresponding quarter of the previous year.
- Refinery Sugar Sales: 2.23 lakh metric tons, up from 1.33 lakh metric tons in the corresponding quarter of the previous year.
- Refinery EBITDA: INR13.24 crore, compared to a loss of INR54.5 crore in the corresponding quarter of the previous year.
Release Date: August 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Standalone revenue from operations increased by 7.58% to INR751 crore compared to the previous year.
- Alcohol sales rose from 3.4 crore liters to 3.9 crore liters year-over-year.
- The Halyal 120-KLPD distillery started operations, and the Nelly-Kuppam 45-KLPD distillery for ethanol completed initial trials.
- The consumer product group achieved a turnover of INR4,216 crore, showing a growth of 67% from the previous year.
- The refinery operations saw a significant increase in revenue to INR1,213 crore compared to INR6.8 crore in the previous year.
Negative Points
- Standalone loss after tax for the quarter was INR78.59 crore, higher than the loss of INR45.77 crore in the previous year.
- Overall sugar sales decreased from 1.21 lakh metric tons to 1.05 lakh metric tons due to a lower release quota.
- The recovery rate for sugar operations dropped to 8.6% from 9.0% in the previous year.
- Revenue from sugar operations declined by 25.3% to INR251 crore compared to the previous year.
- Short-term loans increased significantly due to higher working capital requirements.
Q & A Highlights
Q: We've launched this new Amrit product in brown sugar which is priced at INR80 and your existing product was INR100. What's the thought process behind that? Are you trying to create your brown sugar territory?
A: We are pricing the new brown sugar, which is crystal brown sugar under the Parry Gold brand name, lower to generate more trials from consumers.
Q: How has the traction been for our product and how many distribution points are we at now?
A: We are at about 1.5 lakh outlets in the South of India, and the traction has been pretty good in the first quarter.
Q: For our neutral division, have you got certification from your department?
A: Yes, we have some good news coming through in the next couple of weeks. We should be able to start billing to Europe towards the end of Q3.
Q: Do we plan to convert the sugarcane part into the grain-based part?
A: We are continuously evaluating the opportunity to use different feedstock. We want to have a product where we can use different feedstock and keep evaluating that on a continuous basis.
Q: How do we see the nutraceutical business over the next two years?
A: The business is still under strategic review. We are focusing on running the existing business efficiently and making critical investments in product development. We will articulate a better strategy once clarity emerges.
Q: What is the long-term plan for the refinery business?
A: We are focusing on upselling our sugar to new segments like beverage and food manufacturers, which gives us a higher premium. We are also working on improving our cost position through de-bottlenecking and energy optimization.
Q: How do we see the sugar business turning around given the better monsoon?
A: While monsoons have been better, the deficient monsoon last year has had an impact. It takes almost 24 months to normalize. We are seeing some planting coming our way, but it remains challenging. The policy angle will determine the sector's performance.
Q: What kind of premiums do we get for institutional sales in the refinery business?
A: We get a premium of $10 to $25 per ton depending on the product and institution. Currently, 10% to 15% of our volume is institutional, and we aim to increase this to at least a third.
Q: How do we ensure quality and consistency in our non-sweetener staples business?
A: We source products from different geographies known for certain products and have a large quality control team in place. As volumes grow, our sourcing efficiencies will improve.
Q: Why have short-term loans increased?
A: Short-term loans have increased due to higher working capital requirements. Inventory levels have also gone up, contributing to the increase in short-term loans.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
