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Dwarikesh Sugar Industries Reports Q1 FY25 Financial Results: Faces Challenges Due to Market and Policy Changes

Dwarikesh Sugar Industries Ltd., a leading sugar producer in India, announced its unaudited financial results for the first quarter of FY25, ending June 30, 2024. The company reported a significant downturn in both its revenue and profit metrics compared to the same period last year, attributing the challenges to market conditions and regulatory changes.

Key Financial Highlights

• Total Income: Rs. 341.85 crore, a significant drop from Rs. 571.54 crore in Q1 FY24.
• Loss Before Tax (LBT): Rs. 14.99 crore, compared to a Profit Before Tax (PBT) of Rs. 59.09 crore in Q1 FY24.
• Loss After Tax (LAT): Rs. 9.73 crore, compared to a Profit After Tax (PAT) of Rs. 40.62 crore in Q1 FY24.
• Earnings Per Share (EPS): Loss of Rs. 0.52 per share, compared to a profit of Rs. 2.16 per share in Q1 FY24.

Operational Insights

• Sugar Sales: The company sold 6.75 lakh quintals of sugar during Q1 FY25, a decrease from 9.70 lakh quintals in the same quarter last year. The average realization price was Rs. 3,833 per quintal, an improvement over the Rs. 3,608 per quintal achieved in Q1 FY24.
• Ethanol Production and Sales: The company experienced a significant decline in ethanol sales, with only 12,358 KL sold in Q1 FY25, down from 30,354 KL in the same period last year. This drop was primarily due to government restrictions on the diversion of sugar for ethanol production.

Challenges and Outlook

• Market Conditions: The sugar industry faced subdued sales and off-take during the quarter, with nearly 3 lakh quintals fewer sold compared to the previous year. Sugar prices, which fluctuated due to extensive rainfall, saw a recovery towards the end of July 2024.
• Regulatory Impact: The government's restrictions on the use of cane juice and B heavy molasses for ethanol production further exacerbated the challenges faced by the company, leading to lower production and availability of ethanol for sale to Oil Marketing Companies (OMCs).

Future Prospects

Looking ahead, Dwarikesh Sugar Industries anticipates significant transformations in the upcoming seasons. The company is optimistic about improved crushing figures and a more diverse varietal mix, supported by substantial efforts in crop protection and varietal enhancement. The Central Government's renewed commitment to the ethanol blending program is also expected to revitalize the optimal utilization of distillery capacities and enhance overall operational performance across the industry.

About Dwarikesh Sugar Industries Ltd.

Dwarikesh Sugar Industries Ltd. is a major sugar producer with three fully automated and highly efficient sugar mills located in Uttar Pradesh. The company’s combined production capacity is 21,500 tons of sugarcane per day. It also produces ethanol/industrial alcohol and bagasse-based power as part of its growth strategy. The company’s high recovery rates, plant efficiencies, and cane development initiatives are key differentiators in the industry.

Safe Harbor Statement

This press release has been prepared for informational purposes only and does not constitute an offer, recommendation, or invitation to purchase or subscribe to any securities. The company makes no representations or warranties regarding the accuracy or completeness of the information contained herein.

Contact Information

For more details about Dwarikesh Sugar Industries Ltd., please visit www.dwarikesh.com or contact: