Dalmia Bharat Sugar and Industries Limited today announced its unaudited consolidated results for the quarter ended June 30, 2019.
Despite challenging scenario, the company continues to deliver robust financial results with EBIDTA of Rs. 106 cr against Rs. 90 cr in Q1’19 and PBT of Rs. 69 cr against Rs. 62 cr in Q1’19.
The increased profitability is on account of better sugar realization as compared to the corresponding period on account of introduction of MSP resulting in higher value accretion in sugar segment, despite the drop in volumes.
The distillery segment continues to be our growth driver with higher volumes on account of new capacities added up.
Jawaharpur distillery incineration boiler project is in progress, which is likely to be completed by Oct 2019, the benefits of which would accrue in subsequent years.
Outlook of Sugar Industry:-
India Sugar production is estimated to be at a record level of 330 LMT in SS 18-19 & inventory level may reach 147 LMT at the season end, which is more than six months’ sugar consumption.
Given sugar glut in the country, the Central and State Governments have provided proactive support to the industry. There may be slight respite in the ensuing season with outlook of reduced production of 280 LMT which may bring down the inventory levels. These levels may still be very high and pressure on the industry may continue.
We remain optimistic that Government will continue to proactively take measures to address the crisis and improve the sugar dynamics in the coming years.
For Dalmia Bharat Sugar and Industries Limited
Anil Kataria Chief Financial Officer