(Reuters) -Indian sugar and ethanol maker EID Parry reported a narrower loss in the first-quarter profit on Wednesday, aided by strong performance in the distillery segment.
The Murugappa group company’s loss narrowed to 279.2 million rupees ($3.2 mln) in the three months ended June 30, from a loss of 785.9 million rupees a year earlier.
Revenue from operations rose 1.1% to 7.6 billion rupees, as a 14.25% fall in revenue in the company’s mainstay sugar segment nearly outpaced the 12.4% jump in distillery segment revenue.
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KEY CONTEXT
India’s sugar output for the 2025 marketing year ending in September is projected to fall below consumption for the first time in eight years due to reduced sugarcane supplies in key states. EID Parry’s sales volume in the segment fell 20% year-on-year in the quarter.
However, improved volumes and better realisation in the distillery business helped. India hit an ethanol blend level of 18.93% in petrol as of June, and aims for a 20% blend for supply year 2025-26. Ethanol is made from sugarcane molasses.
PEER COMPARISON
Valuation (next 12 Estimates Analysts’ sentiment
months) (next 12 months)
RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div
growth (%) growth (%) rating* analyst price yield
s target** (%)
E I D-Parry 19.14 7.68 32.78 96.83 Strong 1 1.08 0.33
(India) Buy
Dalmia Bharat 11.68 6.56 6.63 0.12 Hold 1 0.67 1.63
Sugar and
Industries
Dwarikesh Sugar 9.45 6.46 20.87 105.60 Strong 2 0.65 1.17
Industries Buy
Balrampur Chini 20.66 14.52 10.88 15.85 Strong 5 0.83 0.53
Mills Buy
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.6440 rupees
(Reporting by Vijay Malkar in Bengaluru; Editing by Janane Venkatraman)
