(Reuters) -Indian sugar and ethanol maker EID Parry reported a loss in the second-quarter on Tuesday, hit by sluggish sugar demand.
The company posted a loss after tax of 2.86 billion rupees ($32.5 million) in the three months ended September 30, from a profit of 282.5 million rupees a year earlier.
Overall revenue from operations slipped 0.2% to 7.54 billion rupees.
Revenue in the company’s mainstay sugar segment growth was flat, while for the distillery segment it grew 3.9%.
For further earnings highlights, click [here]
KEY CONTEXT
India’s sugar exports are expected to fall below 800,000 metric tons this season, short of the 1 million-ton quota, as cheaper Brazilian supplies drive down global prices, making Indian shipments less competitive, according to trade and government officials.
The South Asian nation had permitted 1 million tons of sugar exports for the 2025 season to create opportunities for producers to offload surplus stocks and support domestic prices.
Domestic producers saw a 2% year-on-year drop in industry volumes to 6.8 million tonnes in the quarter, while prices held steady.
Ethanol output rose sharply by 40% to 1.8 billion litres in July and August, helping cushion earnings for companies with distillery operations.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean No.
of Stock to Div
growth (%) growth (%) rating* analyst price yield
s target** (%)
E I D-Parry (India) 15.47 6.72 20.22 47.99 Strong 1 0.73 0.39
Buy
Dalmia Bharat Sugar 9.09 6.96 5.94 -4.38 Hold 1 0.71 1.88
and Industries
Dwarikesh Sugar 7.23 2.99 NULL NULL Strong 1 0.58 1.19
Industries Buy
Balrampur Chini 15.56 11.37 15.66 14.97 Strong 6 0.66 0.69
Mills Buy
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.8950 rupees
($1 = 87.8950 Indian rupees)
(Reporting by Yagnoseni Das in Bengaluru; Editing by Ronojoy Mazumdar)
