EID-Parry posts Q3 results: Sugar maker posts loss hurt by export curbs

Indian sugar maker E.I.D.- Parry reported a third-quarter loss on Tuesday, hurt by government restriction on exports and a fall in production.

The company reported a loss after tax of Rs 13.59 crore ($1.64 million) in the quarter ended Dec. 31, compared to a profit after tax of Rs15.78 crore a year ago.

Revenue from operations fell 7.9% to Rs 668 crore. 

KEY CONTEXT

The world's second-largest sugar producer, India, logged a 7.6% fall in sugar production in the October-December quarter due to poor monsoon rains, with key producing states Maharashtra and Karnataka taking the biggest hits. The two states together account for more than half of the country's total sugar output.

India's monsoon rainfall in 2023 was its lowest since 2018 as the El Nino weather pattern made August the driest in more than a century.

The government extended its restriction on sugar exports beyond October in its efforts to bring down domestic prices.

Peers Dalmia Bharat Sugar and Industries and Dhampur Sugar Mills also reported declines in third-quarter profit.