EID Parry posts Rs 276 crore PBT in Q1 versus Rs 11 cr loss a year ago

Better realisation, aggressive cost cutting drive numbers; Lockdown impact minimal as sugar industry could operate under essential category

EID Parry has reported a profit before tax of Rs 275.53 crore for the quarter ended June 30, 2020 as against a loss of Rs 11.01 crore a year ago. The firm's consolidated revenue from operations for the quarter was Rs 4,142 crore, up 32 per cent from Rs 3,127 crore in the corresponding period the preceding year.

Standalone revenue from operations for the reporting quarter was Rs 491 crore versus Rs 389 crore a year ago. 

Earnings before interest, taxes, depreciation and amortisation (Ebitda) and before exceptional items for the quarter stood at Rs 6 crore, compared to a loss of Rs 31 crore in the corresponding quarter of the previous year. Standalone profit after tax for the quarter was Rs 226 crore (Rs 53 crore loss a year ago).

The Consolidated Sugar operations reported an operating loss for the quarter of Rs 29 crore (Rs 53 crore loss a year ago), while farm inputs operations reported an operating profit of Rs 424 crore (Rs 208 crore). The NutraceuticalsDivision registered a loss before interest and tax of Rs 3 crore (Rs 11 crore loss), largely on account of operations being adversely impacted early in the Lockdown.

S Suresh, Managing Director, EID Parry said the standalone results mentioned that the company’s performance in Q1 2020-21 was better than the corresponding quarter of the previous year, on account of better realisation, coupled  with the aggressive cost reduction measures across all areas. The operations of the company were relatively less affected on account of the Covid lockdowns, as the sugar industry could operate under the Essential products category. 

"There were disruptions in the supply chain and logistics, due to which the company could not achieve the planned sales in retail and institutional segment and also in the production and sale of alcohol.However we were able to export around 40,000 MT under the MAEQ scheme which also helped in better cash flow and profitability," Suresh said.

Also, the company sold two per cent stake in its subsidiary, Coromandel International Ltd, during the quarter and used the proceeds to reduce high-cost debt of the Company. 

"Consolidated Nutraceuticals business registered strong  growth with a turnover of Rs 74 crore as against Rs 47 crore a year ago. A stronger offtake in the US Market was the key driver,” Suresh said.