Dwarikesh Sugar Industries Limited reported a 4.8% decline in its net profit at ₹10 crore for the October-December quarter, down from ₹10.5 crore in the year-ago period. The sugar manufacturer reported its financial results for the quarter ended December 2023 on January 31, 2024.
The revenue for the quarter under review came at ₹313 crore, down 18.4% from ₹384 crore. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined 1.3% from ₹26.5 crore to ₹26.1 crore.
In 2023, the UP government made it obligatory for sugar manufacturers to give additional molasses for the country liquor manufacturing. In a conversation with CNBC-TV18, Vijay Banka, Managing Director, Dwarikesh Sugar, said the move entailed expenditure of about ₹19.92 crore. However, he highlighted that this was in the previous quarter. "In this particular quarter, our numbers are flattish, in fact, slightly on the lower side. But if you compare with the corresponding nine months of last year, we are marginally better," Banka said.
"The margins in the distillery segments have come down, but the sugar prices have been better. So I wouldn't say there has been corresponding increase, but yes, to some extent it got compensated," Banka said.
