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Dwarikesh Sugar Industries Ltd., announced its unaudited financial results for the quarter and year ended March 31, 2023.

In Q4 FY23, the company reported profit before tax (PBT) of Rs. 69.59 crore and profit after tax (PAT) of Rs. 46.75 crore and for FY 23 reported PBT of Rs. 152.51 crores and PAT of Rs. 104.81 cror

Decline in profit over previous periods is attributable to lower recoveries translating in to higher cost of goods sold without commensurate increase in their price. Sugarcane varietal replacement efforts have been intensified, the benefits of which will accrue in the times to come  

As per the latest update, ISMA has further trimmed the production estimate of SS 2022-23 to 32.8 million tons. The same is after considering diversion of around 4 million tons of sugar equivalent into ethanol. Government has approved export of 6 million tons of which major quantity is reportedly already exported. 

Key Numbers of P&L statement of P&L Statement:

* Sugar sold during Q4FY23 is 8.75 lakhs quintals (including export of 0.66 lakh quintals) as compared to 10.11 lakh quintals of sugar sold during corresponding quarter last year.

* During FY23 42.00 lakhs quintals (including export of 10.00 lakh quintals) of sugar was sold as compared to 45.98 lakh quintals (including export of 2.50 lakh quintals) of sugar sold during FY22.

* Sugar stock as on 31^st March 2023 was 10.61 lakh quintals as compared to sugar stock of 19.63 lakh quintal as on 31^st March 2022.

* Industrial Alcohol sold during Q4FY23 and year ended FY23 is 29,501 KL and 84,175 KL respectively as compared to 16,526 KL and 55,728 KL sold during Q4FY22 and year ended FY22.

* During the season SS 2022-23, cane juice is being used at both the distilleries to produce ethanol. Whereas B heavy molasses being generated across all the three sugar units during season is stored and will be used for producing ethanol at the distilleries during off-season. This will result in moderation of sugar production. Distilleries at both DN & DD units are optimally working at their rated capacity.

* During the ongoing season, up to 31^st March, 2023, 302.71 lakh quintals of sugarcane was crushed across all three units and 24.02 lakh quintals of sugar was produced.  Out of the above quantity of sugarcane crushed, 60.69 lakh quintals of sugarcane crushed was diverted for production of ethanol.

* As per the trends, sugarcane available for crushing during SS 2022-23 will be similar to the sugarcane crushed last season. While the crushing for SS 2022-23 at DD plant concluded on the 14^th April, 2023, it is expected that crushing at DN & DP plant will continue till the third week of May, 2023   

*  The company is making cane price payment ahead of stipulated schedule. As on 31^st March, 2023 company had cleared sugarcane price payment of sugarcane procured till the 27^th April, 2023 and as on date company has cleared sugarcane price payment of sugarcane procured till the 17^th April, 2023, including full and final payment of sugarcane procured at DD unit for SS 2022-23 

* Year end results under reckoning captures the additional cost of Rs. 894.92 lakhs pertaining to prior periods, arising out of retrospective revision of wages payable to employees covered under wage board, pursuant to notification no. 2156788/2022/Shrum-2 dated August 03, 2022 issued by the Government of Uttar Pradesh

*  As per the export order dated 5^th November, 2022 issued by the DFPD, Ministry of Consumer affairs, Food & Public distribution, 86,001 MTs of quota was allotted to the company out of total export quota of 6 million tons for the entire country. With a view to rationalize logistics costs, the scheme of export allows for partial / full exchange of export quota with domestic quota of another sugar mill. While the company has already delivered 50,000 MTs of raw sugar for export, it has exchanged the balance export quota with domestic quota of a sugar mill in Maharashtra. The benefit of exchange by way of additional domestic quota / releases will be available to the company between April, 2023 and September, 2023.

* On 31^st March 2023, the company had outstanding long-term loans of Rs. 283.50 crore including SEFASU 2018 loan of Rs. 33.62 crore. Balance amount of Rs. 249.88 crore is in respect of loans availed for the distillery projects, which includes loan of Rs. 185.60 crores for the new distillery project at DD unit. All the outstanding long-term loans are at concessional rate of interest.

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