Kolkata: Avadh Sugar & Energy Ltd (ASEL) has reported Rs 100 crore Profit After Tax (PAT) for FY 23, marking a decline of 19% compared to Rs 124 crore in FY 22.
The company attributed the decrease in profitability to lower recovery caused by the Red Rot disease in Sugarcane.
Despite the decline in PAT, ASEL reported a growth in revenue from operations for FY 23. The revenue stood at Rs. 2798 crore, slightly higher than the previous fiscal year’s revenue of Rs. 2744 crore.
However, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) witnessed a decline in FY 23. It amounted to Rs 264 crore, compared to Rs 307 crore in FY 22, reflecting a decrease of 14%.
The board of directors of ASEL has declared a dividend of Rs 10 per share on the face value of ₹10 each.
Commenting on the results, Avadh Sugar & Energy Ltd Co-Chairperson C.S. Nopany said, “The Indian Sugar Industry, after a year of record exports, continues to be a bellwether of the global sugar industry and is fuelling India’s consumption, energy security and exports. With a lower than anticipated sugar production and an overall cap on exports, prices are expected to remain stable.”
Uttar Pradesh saw a lower recovery of sugar due to the dominant sugarcane variety being affected by the Red Rot disease.
Avadh had started an aggressive varietal change program and we should start seeing results from the next season onwards, he said.
With a higher quantum of crushing in this season ethanol production received a boost. The structural changes over the past few years are reflected in the performance of the industry on the back of reduced cyclicality, said Nopany.
“At Avadh, reducing our leverage through reduction of debt and other non-current liabilities have helped the company create a solid platform for growth as well as improved productivity through our strategic investments. We hope to continue to add value to our stakeholders and look forward to a strong FY24,” he added.