Indian sugar maker EID-Parry's Q1 loss widens on higher inventory cost
Indian sugar maker E.I.D.-Parry reported a wider first-quarter loss on Wednesday, hurt by high inventory cost.
The company reported a loss of 785.9 million rupees ($9.4 million) in the April-June quarter, compared to a loss of 457.7 million rupees a year ago.
Revenue from operations rose 7.6% to 7.51 billion rupees.
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KEY CONTEXT
Indian sugar companies are facing rising inventory costs. Peers such as Dalmia Bharat, Dwarikesh Sugar and Dhampur Sugar Mills also saw an increase in these expenses in the April-June quarter.
India's restrictions on sugar use for ethanol and export bans in the 2023/24 marketing year have led to higher inventories.
The country's sugar production may drop 2% to 33.3 million metric tons in the 2024/25 marketing year due to reduced planting from last year's drought. This decline could limit exports and support global prices.
PEER COMPARISON
Valuation (next Estimates (next 12 months) Analysts' sentiment
12 months)
RIC PE EV/EBITDA Revenue Profit growth (%) Mean rating* No of analysts Stock to price target** Div yield (%)
growth (%)
E I D-Parry (India) Ltd 38.04 45.55 - - Strong Buy 1 0.89 1.00
Dalmia Bharat Sugar and Industries Ltd 10.42 7.79 17.19 10.79 Hold 1 0.82 1.25
Dwarikesh Sugar Industries Ltd 11.79 8.39 2.36 18.51 Buy 2 0.97 -
Balrampur Chini Mills Ltd 16.96 12.94 9.35 8.66 Strong Buy 4 0.98 0.62
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
-- All data from LSEG IBES
-- $1 = 83.9450 Indian rupees
