Dhampur Sugar Q4 Results Review - Stable Sugar Recovery, Rising Sugar Prices To Aid Profit: ICICI Direct

ICICI Direct Report

Dhampur Sugar Mills Ltd. reported strong results with 53.7% growth in Ebitda.

Sales saw growth of 43.9% YoY led by 68.2% growth in ethanol revenues.

Ebitda was at Rs 104.4 crore, up 53.7% YoY, with margins at 15.5%. Consequent profit after tax was at Rs 60.7 crore (up 104.2% YoY).

Key triggers for future price performance:

• Dhampur Sugar has commissioned 130 thousand litres per day distillery capacity in February 2023. This along with 100 KLD grain-based distillery (likely to get commissioned by June 2023) would take its annual distillery volumes to 15 crore litre. Total ethanol would contribute 38% to overall sales by FY25.

• The company would be diverting ~25% of its sugarcane towards sugarcane juice route to produce ethanol. Dhampur Sugar would divert ~1.7 lakh tonnes each of equivalent sugar to produce ethanol in FY24E and FY25E.

• We expect cumulative free cash flow of Rs 360 crore in the next two years, which would result in debt reduction and a higher dividend payout.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.