Q2 2025 Dwarikesh Sugar Industries Ltd Earnings Call Transcript
Key Points
- The ethanol blending program has been resumed, which is expected to positively impact production planning and utilization of distillery capacities.
- The company is actively working on varietal replacement and crop protection to improve sugarcane yield and recovery in future seasons.
- Dwarikesh Sugar Industries Ltd maintains a strong credit rating, with a double A rating for long-term loans and an A1+ rating for its commercial paper program.
- The company expects to supply more than 7 crore litres of ethanol, leveraging both juice and B-heavy molasses, indicating a strong focus on ethanol production.
- Export prices for sugar are favorable due to global factors, such as wildfires in Brazil, which could benefit the company if export restrictions are lifted.
- The company reported a significant loss before tax of INR36 crores and a loss after tax of INR24 crores for the quarter, compared to a profit in the same period last year.
- Sugar sales volume decreased significantly, with 5.97 lakh quintals sold this quarter compared to 7.19 lakh quintals in the corresponding quarter last year.
- Ethanol sales also dropped, with only 31.24 lakh kilolitres sold compared to 2.87 crore litres in the previous year, impacting overall turnover.
- The company faced challenges due to lower sugarcane availability, attributed to red rot infestation, leading to a shorter crushing season and reduced operations.
- There is uncertainty regarding government decisions on sugar exports, as they may wait for more clarity on production levels before allowing exports.
Ladies and gentlemen, good day and welcome to Dwarikesh Sugar Industry, Q2 FY25 earnings conference call hosted by Dolat Capital.
(Operator instruction)
I now hand the conference over to Mr Krushna Parik from the capital. Thank you and over to you, sir.
Thank you. Good afternoon. Everyone on behalf of the Dolat Capital, I would like to thank the management of the Dwarikesh Sugar Industries for giving us the opportunity to host their Q2 FY25 earnings conference call. From the management team we have with us today, Mr Vijay S Banks Managing Director and Mr BJ Maheshwari Managing Director and Company Secretary, cum Chief Compliance Officer. Without further ado I would like to hand over the call to the management for their opening remarks, post which will open the forum for a Q&A session. Thank you and over to you, sir.
Yeah, very good afternoon. Thank you so much Krushna.
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