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EID Parry sees 45% drop in profit

CHENNAI: Sugar manufacturer EID Parry clocked a 45% drop in its standalone PAT in Q2 of FY20 at Rs 6 crore, down from Rs 11 crore registered in the same period the previous fiscal.

However, revenue from operations stood at Rs 442 crore, registering 26% growth from Rs 351 crore in the same period the previous fiscal.



The company’s sugar units saw poor performance, while its nutraceutical division has posted growth, a statement from EID Parry added.

The performance of the company got affected in Q2 of FY 2019-20 due to muted sugar prices on account of higher sugar inventory and release order mechanism. However, the sugar prices improved compared to the previous quarter due to floods in Karnataka and Maharashtra which affected the movement of sugar stocks from these states to other states, thereby benefiting the company.

During the quarter, sugarcane crushing volumes in Tamil Nadu units were better compared to previous year numbers. Also, the company has taken approval of the board of directors to establish a 60 KLPD greenfield distillery plant at Bagalkot unit in Karnataka

“The central government has been taking various supportive measures to provide stability to the sugar prices, in the form of buffer stock mechanism, minimum support price for sugar, export quota and related subsidy and upward revision of ethanol price. Further, the Tamil Nadu government has taken positive steps to increase the domestic sales of alcohol within the state by regulating import from other States. These would augur well for the Company in the coming quarters,” said S Suresh, MD, EID Parry.

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