Magadh Sugar & Energy rose 1.41% to Rs 320.10 after the company’s net profit rose 36.66% to Rs 19.98 crore on 9.29% decrease in revenue from operations to Rs 201.58 crore in Q3 December 2021 over Q3 December 2020.
Profit before tax in the third quarter stood at Rs 30.61 crore, up by 37.33% from Rs 22.29 crore reported in the same period last year.
EBITDA improved by 4.88% to Rs 43 crore in Q3 FY22 from Rs 41 crore in Q3 FY21.
Total expenses fell 13.87% to Rs 172.33 crore with cost of raw materials consumed sliding 0.39% to Rs 209.25 crore during the period under review.
During the quarter, revenues from sugar business fell 0.28% YoY to Rs 202.74 crore while revenue from distillery business dropped 22.29% to Rs 21.68 crore.
Commenting on the results, C.S. Nopany, chairperson, Magadh Sugar & Energy said: “The Indian Sugar Industry has undergone various positive structural changes in the recent past and the momentum is likely to continue. However, the industry in Bihar suffered a serious setback due to exceptional record rainfall during the year severely impacting recovery and yield of sugarcane. Proactive management and cane development activities have helped us to minimize the adverse impact of these events. Magadh Sugar continues to achieve satisfactory recovery compare to other mills in the region, despite the rainfall.
Ethanol remains a strong focus of GOI and India is growing very fast to establish its ethanol infrastructure. At Magadh Sugar, we are in-line with our capex and have expanded our ethanol capacity with the commissioning of a Greenfield distillery at Sidhwalia. This is expected to improve the high value product mix and enhance profitability. We believe our efficient operations will enable us to continue on our growth trajectory.”
Meanwhile, the company said it has commenced commercial production of Ethanol at its greenfield distillery at Sidhwalia from 1 February 2022, with a capacity of 70 KLPD.
Magadh Sugar & Energy is having three sugar mills at New Swadeshi Sugar Mills, Narkatiaganj (District West Champaran, Bihar), Bharat Sugar Mills (District Sidhwalia, Bihar), Hansanpur Sugar Mills, Hasanpur (District Samastipur, Bihar) with a combined crushing capacity of 19,000 TCD. The company is also having one distillery at Narkatiganj with a total capacity of 150 KLPD (B Mollases). The company is also having co-gen facility and can generate 38 MW power.