Uttam Sugar Mills Q4FY22 PAT up 119.4% at Rs61.06 crore boosted by smart inventory efficiency gains

Uttam Sugar Mills Ltd reported -11.38% fall in sales revenues yoy for the Q4FY22 quarter on consolidated basis at Rs490.40 crore. On a sequential basis, revenues were lower for the quarter by -20.60%.

For full year FY22, the revenues were higher by 11.8% at Rs2,034 crore. For Q4FY22, revenues were lower but that is more on account of the fact that the sugar business by nature is cyclical in nature.

The revenues from the distillery and the cogeneration business were higher on a yoy basis and it was only the revenues of the sugar business of Uttam Sugars that trended lower on a yoy basis. Dividend is at Rs2 per share.

The consolidated net profit for Q4FY22 was sharply higher by 119.4% at Rs61.06 crore while it was also up on a sequential basis by 55.65%.

For Q4FY22, the entire boost to the profit came from inventory efficiency gains. Net margins were 12.45% in Q4FY22 quarter compared to 5.03% in Q4FY21. NPM was lower as compared to 6.35% in Q3FY22.

Net cash from operations were up 78.8% yoy at Rs320 crore for the full year FY22. This was on the back of a sharp fall in inventories as well as a sharp fall in other financial assets.