Dwarikesh Sugar Q4 Results Review - Lower Profitability Negates Robust Ethanol Sales; FY24E Bright: Systematix

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.Dwarikesh Sugar Industries Ltd.'s 12% YoY revenue growth in Q4 FY23 at Rs 5.3 billion came from strong performance across all segments, with the distillery segment posting 99% YoY, sugar 21% YoY and cogeneration 7% YoY growth. Ebitda margin contracted ~530 basis points YoY to 16.2%, as Ebitda fell 16% YoY to Rs 864 million, due to-lower sugar volumes and muted sugar prices,lower recovery, leading to higher cost of production, andlower profitability in the distillery division. Higher depreciation (9% YoY) and finance costs (9% YoY) along with low operating profit led to profit after tax slipping 22% YoY to Rs 468 million. Management cited Rs 1-2/kg rise in domestic sugar prices from April 01, 2023, with no major increase in costs. We have thus raised our FY24E/FY25E Ebitda by ~12.5%/10%, to factor in the higher sugar prices, improvement in yields due to change in varietal mix, and stable costs. We have also raised earnings per share by ~16%/13% for the same period, respectively..Click on the attachment to read the full report:.Surya Roshni Q4 Results Review - Focus Shifts To Gradual Expansion, Earnings Growth: Systematix.DISCLAIMERThis 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.

Dwarikesh Sugar Q4 Results Review - Lower Profitability Negates Robust Ethanol Sales; FY24E Bright: Systematix

Higher costs and muted prices hurt profitability.

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