E.I.D. Parry rises after Q2 PAT jumps 48% YoY

E.I.D. Parry (India) gained 2.15% to Rs 292 after the sugar maker posted a 48% rise in consolidated net profit to Rs 562.70 crore in Q2 September 2020 from Rs 380.36 crore in Q2 September 2019.

Consolidated net sales grew by 2.8% to Rs 5836.21 crore in Q2 September 2020 from Rs 5675 crore in Q2 September 2019. The result was announced after market hours yesterday, 9 November 2020.

Consolidated profit before tax stood at Rs 748 crore in Q2 September 2020, higher by 54.4% from Rs 484.41 crore in Q2 September 2019. Total tax expense spiked 78% to Rs 185.35 crore in Q2 September 2020 over Q2 September 2019.

Consolidated EBITDA for Q2 September 2020 came at Rs 890 crore, registering a 31% rise year on year from Rs 681 crore in the corresponding period last year.

The consolidated sugar operations reported a loss before interest and tax of Rs 10 crore (corresponding quarter of previous year: Rs 82 crore) for the quarter. The consolidated farm input operations reported a profit before interest and tax of Rs 845 crore (corresponding quarter of previous year: Rs 712 crore) for the quarter. For the quarter, consolidated nutraceuticals division registered a profit before interest and tax of Rs 1 crore as against a loss of Rs 6 crore in the corresponding quarter of the previous year, on the back of good offtake in Europe and the USA.

Commenting on company's performance, S Suresh, managing director said, The performance of the Company was better in Q2 2020-21 as compared to corresponding quarter of previous year on account of better realisation and the cost reduction measures which continued from the Q1 2020-21. The Company was successful in meeting the export obligation for sugar season 2019-20 under MAEQ scheme. Sugar prices remained in the same levels of that of Q1 2020-21 and release order mechanism continued to be in place. Government has increased the FRP by Rs 100 per MT for the sugar season 2020-21 without any increase in MSP of sugar. Though, the Government of India has announced increase in Ethanol procurement rates varying between Rs.1.90 to Rs.3.34 per litre depending on the grades of ethanol for the period December 2020 to November 2021, industry is expecting an increase in MSP for Sugar for covering the increase in cane and other costs for healthy survival. Availability of cane is expected to be better in Karnataka for sugar season 2020-21 as compared to previous sugar season while in Tamilnadu and Andhra it is expected to be in same lines as that of last year.

E.I.D. Parry is a significant player in sugar with interests in promising areas of nutraceuticals business.

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