Dwarikesh Sugar Q4 Review - Splendid Profit Growth Aided By Distillery Volumes: ICICI Direct
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ICICI Direct Report
Dwarikesh Sugar Industries Ltd. reported strong profit growth in Q4 FY22.
Consolidated revenue declined 20.8% to Rs 475 crore, mainly on account of 33.6% de-growth in sugar volumes due to absence of exports and lower domestic sales quota.
Absence of exports was due to differential timing in sugar exports. The company exported large quantities of sugar in base quarter last year whereas it exported 25,000 tonnes of sugar in Q3 FY22.
Moreover, it would further export 50,000 tonnes in Q1 FY23.
Sugar realisation was up 8.6% to Rs 33.9 / kilogram compared to ~Rs 31.5 /kg in the corresponding period. Sugar realisation has increased due to continuous industry wide reduction in sugar inventories.
Dwarikesh Sugar is holding sugar inventory of 1.96 lakh tonnes as on March 2022 against 2.6 lakh tonnes valued in March -2021. The sugar inventory is valued at Rs 32/kg.
Distillery revenues grew 31.7% to 97.9 crore led by 28.9% growth in volumes and 2.6% growth in realisation.
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