Dwarikesh Sugar shares have a bitter Friday post weak earnings

The company's operating profit or EBITDA also more than halved from the September quarter of financial year 2022, declining 62 percent to Rs 28 crore. Last year, EBITDA stood at Rs 75 crore.

Revenue from the Sugar Segment, which contributes to majority of the overall topline increased 6 percent year-on-year to Rs 455 crore. However, EBIT more than halved to Rs 13 crore compared to Rs 31 crore last year, while margins were a negative 2.8 percent.

The distillery segment also reported a 41 percent growth in topline, but EBIT declined 20 percent year-on-year, while margin contracted over 18 percentage points.

Earlier, the government had capped exports of sugar at 100 lakh tonnes with an aim to keep the domestic prices under control.

In August this year, the government allowed the industry to export an additional 1.2 million tonnes of sugar.

The government's decision came after a group of ministers (GoM) recommended allowing additional exports of sugar as mills demanded permission for the same.

India is the second biggest sugar exporter after Brazil. The country is set to surpass Brazil to become the world’s biggest sugar producer with a total output of 36 million tonnes, according to estimates by the Indian Sugar Mills Association.

Shares of Dwarikesh Sugar ended 3.4 percent lower at Rs 92.05. The stock is up nearly 30 percent so far this year.