E.I.D Parry down 4% on posting 32% decline in Q2 profit, margins contract

E.I.D Parry India share price lost 4.4 per cent on Monday and logged an intraday low at Rs 748 per share on BSE. The selling pressure can be attributed to the company posting a 32 per cent decline in Q2FY25 profit. 

 

Around 10:36 AM, E.I.D Parry shares were down 2.85 per cent at Rs 760.6 per share on BSE. In comparison, the BSE Sensex was down 0.59 per cent at 77,121.15. The market capitalisation of the company stood at Rs 13,505.76 crore. The 52-week high of the stock was at Rs 879.95 per share on BSE and 52-week low of the stock was at Rs 476.3 per share.

 

The sugar manufacturer on Thursday after market hours posted its September quarter results. The company reported a 32 per cent year-on-year (Y-o-Y) slip in the consolidated net profit (attributed to owners) to Rs 306 crore, compared to Rs 452.27 crore in Q2 FY24.

 

The company's revenue from operation grew 3 per cent to Rs 9330 crore as compared to Rs 9,059 crore a year ago.

 

Meanwhile, Earnings before interest, tax, and depreciation amortisation (Ebitda) stood at Rs 972 crore as compared to Rs 1,057 crore a year ago. The Ebitda margins stood at 10.4 per cent as compared to 11.7 per cent a year ago. 

 

Commenting on the financial performance, company Whole-Time Director and Chief Executive Officer Muthiah Murugappan said, "The standalone profit of the sugar segment was lower in Q2 2024-25 as compared to the corresponding quarter of the previous year on account of lower cane volume, a drop in recovery from cane, higher input costs in distillery segment and lower sales volume in sugar on account of lower release quota."  

 

The sugar operations including refinery business reported a loss before interest and tax of Rs 38 crore as compared to profits of Rs 24 crore registered in the same quarter of last financial year.

The consolidated farm inputs operations reported profits before interest and tax of Rs 959 crore, as compared to profits before interest and tax of Rs 1,078 crore registered in the year-ago period.

 

The nutraceuticals division registered a loss before interest and tax of Rs 5 crore as against a profit of Rs 24 crore registered in the same quarter of last financial year, it added.

 

In the past one year, E.I.D Parry shares have gained 58.6  per cent against Sensex's rise of 18 per cent.