The net profit was declined 16.29% to Rs51.86cr in the quarter ended March 2021 as against Rs61.95cr during the previous quarter ended March 2020. Sales declined 11.26% to Rs488.80cr in the quarter ended March 2021 as against Rs550.85cr during the previous quarter ended March 2020.
“We have repaid long term loans amounting to Rs245cr resulting in long term debt reduction from Rs521cr to Rs276cr. Post this, long term debt - equity ratio (consolidated) stands very healthy at 0.08x as on 31st March 2021,” Dalmia Bharat Sugar said.
The board of directors has proposed a final dividend @ 150% i.e. Rs3 per share (face value Rs2 per share) for the FY 2020-21 subject to approval of shareholders at the Annual General Meeting.
Project and other updates:
- Nigohi Distillery expansion completed during the quarter and is operational at expanded capacity.
- Branded sugar launched successfully in March 2021 and the product has been well received by the market.
- Diverted around 60 KMT sugar towards ethanol during the sugar season 20-21.
- All other projects related to sugar & distillery expansion and greenfield distillery at Ramgarh are under implementation albeit possibility of few months’ delay due to pandemic.
- In SS’20 sugar inventory is lower at 10.7 M Mt as against 14.5 M Mt for SS’19 mainly due to exports and to further go down in ensuing SS to 9.2 M Mt mainly on account of higher diversion of sugar to ethanol and exports.
- Sugar industry is well poised to benefit both from global and domestic factors. Tight global demand supply situation, favourable government policies and push for higher ethanol blending in India will keep the inventory under control.
- In light of the above the short to medium term outlook of the industry remains promising.