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HomeEthanolPonni Sugars (Erode) Ltd Witnesses 6% Surge in Shares Amidst Strong Q3...

Ponni Sugars (Erode) Ltd Witnesses 6% Surge in Shares Amidst Strong Q3 Financial Performance

Robust Profits and Revenue Growth Propel Ponni Sugars to Stock Market Heights

The shares of Ponni Sugars (Erode) Ltd experienced a notable uptrend, surging by up to 6 percent following the release of the company’s third-quarter results. The robust financial performance revealed a substantial 52 percent YoY increase in net profit and a commendable 22 percent growth in revenue.

As of the latest trading session, the market capitalization of Ponni Sugars (Erode) Ltd stands at Rs 371.45 crore, with each share trading at Rs 432.00, marking a significant 5.74 percent increase compared to the previous closing price of Rs 408.55.

Examining the quarterly performance, the company’s revenue witnessed a marginal 1 percent decline QoQ, settling at Rs. 126.47 crores in Q3 FY24 from Rs. 128 crores in Q2 FY24. However, on a YoY basis, there was a noteworthy 24 percent surge, rising from Rs. 102 crore in Q3 FY23 to Rs. 126.47 crore in Q3 FY24.

In terms of net profit, a QoQ decrease of 22 percent was reported, falling from Rs. 15 crores in Q2 FY24 to Rs. 11.7 crores in Q3 FY24. Nevertheless, there was a substantial 53 percent YoY increase, up from Rs. 7 crores in Q3 FY23 to Rs. 11.7 crores in Q3 FY24.

Ponni Sugars (Erode) Ltd also accomplished Phase 1 of the Energy Efficiency Project with a capital cost of Rs 12 crore and completed Phase 2, with a budget of Rs 5 crore, funded entirely through internal accruals. The company pioneered a 45 KLPD distillery-cum-ethanol plant in June 2019, focusing on utilizing B-heavy molasses and sugarcane juice for ethanol production.

The recent financial year showcased strong return ratios for Ponni Sugars (Erode) Ltd, with a return on equity (ROE) of 18.8 percent and a return on capital employed (ROCE) of 14.4 percent.

Examining the shareholding pattern, the Promoters hold 42.36 percent, Retail shareholders possess a 34.74 percent stake, and Foreign Institutional Investors own 22.85 percent of the company.

Ponni Sugars (Erode) Limited, associated with Seshasayee Paper and Boards Limited, operates a sugar mill in Erode (Tamil Nadu), capable of crushing 3500 tons of sugarcane daily and producing 19 MW of power.

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