Gurugram, India – November 12, 2024: Zuari Industries Limited (BSE: 500780, NSE: ZUARIIND), the flagship company of the Adventz Group, today announced its financial results for the quarter ended September 30, 2024. The company highlighted strong operational achievements and strategic initiatives, despite ongoing challenges in the broader macroeconomic environment.
Key Financial Highlights:
- Standalone Revenue for Q2 FY25 reached INR 240.91 crore, marking a 4.3% growth compared to the previous quarter (Q1 FY25).
- EBITDA grew by 8.9% to INR 37.06 crore, reflecting improved operational efficiencies.
- Sugar Sales saw an uptick of 10.5% compared to Q1 FY25, with strong growth in both volumes and revenue.
- Ethanol Sales grew by 11.1% year-on-year, indicating the company’s continued success in the biofuel segment.
- Consolidated Revenue for the quarter stood at INR 277.1 crore, reflecting a 14.5% growth from Q1 FY25.
- Consolidated Profit After Tax (PAT) improved significantly, narrowing losses to INR 14.77 crore, compared to a loss of INR 33.60 crore in Q1 FY25.
Despite a challenging financial landscape, Zuari Industries has focused on cost control, efficient debt management, and improving profitability across its diverse business verticals.
Operational Excellence Drives Growth:
Zuari’s operational performance in its Sugar, Power, and Ethanol (SPE) division stood out, with the highest number of distillery operating days recorded for the ethanol segment in the first half of FY25. In line with its strategic objectives, the company saw significant growth in both sugar production and ethanol sales. Sugar sales for the first half of FY25 increased to 8.0 lakh quintals, up from 7.4 lakh quintals in H1 FY24, while ethanol sales grew by 11.1%, reaching INR 100.2 crore, compared to INR 90.1 crore in the same period last year.
Focus on Biofuel and Sustainable Growth:
Zuari’s bioethanol joint venture (ZEBPL) remains on track, with the project now 43% complete. The company is optimistic about the project’s mid-2025 commissioning, which aligns with its long-term strategy of enhancing green energy and sustainable biofuel production.
Deleveraging and Cost Optimization:
Zuari Industries has also made significant strides in reducing finance costs, a key focus for the company this year. Through refinancing initiatives, the company achieved a savings of INR 9.2 crore in H1 FY25. The reduction in debt servicing costs, coupled with strong operational performance, has contributed to the overall financial stability of the company.
Athar Shahab, Managing Director of Zuari Industries, commented on the results, “In Q2 FY25, Zuari Industries demonstrated resilience in the face of challenging market conditions. We achieved important milestones in our Sugar, Power, and Ethanol segments, while optimizing our cost structure and reducing debt. Our focus on sustainable growth, coupled with strategic investments in bioethanol and operational improvements, positions us well for future success.”
Growth Across Divisions:
Zuari’s diversified business portfolio continues to show promise, with notable improvements across its various segments:
- Investment Services: Zuari’s financial services arm, including Zuari Finserv and Zuari Insurance Broking, reported strong growth in EBITDA, contributing positively to the consolidated financial results.
- Real Estate: The company continues to build on its strong presence in the real estate sector, with projects such as the St. Regis Financial Centre in Dubai and premium developments in Goa.
- Power: Although power segment results were slightly negative in Q2, the company remains committed to its energy vertical, with a focus on renewable energy and power generation through bioethanol.
Outlook:
Looking ahead, Zuari Industries is focused on continuing its deleveraging efforts, improving operational efficiencies, and driving sustainable growth. The company remains committed to strengthening its market position and delivering long-term value to stakeholders.
“As we move into the second half of FY25, we remain optimistic about the opportunities in both traditional and emerging markets,” said Shahab. “We are confident that our diversified portfolio, cost discipline, and commitment to sustainability will drive continued growth.”
About Zuari Industries Limited:
Zuari Industries is the flagship company of Adventz Group, a leading conglomerate with a legacy of over five decades. With a diverse portfolio spanning agrochemicals, engineering, infrastructure, real estate, and financial services, Zuari Industries is a key player in India’s industrial landscape. The company is committed to delivering high-quality products and services while driving sustainable growth and fostering innovation across its operations.
For more information, visit www.zuariindustries.in.
