6 consumer firms beat demonetisation blues; report up to 22-fold YoY rise in Q3 net profit
Despite the demonetisation of high-value currency notes in the last quarter of 2016, selected consumer-oriented players such as EID Parry, Dwarikesh Sugar, United Spirits, Godfrey Phillips, Dalmia Bharat Sugar and Tata Global have reported up to 2,083 per cent year-on-year growth in bottomlines for the quarter ended December 31, 2016.
Market experts say firm prices of the sweetener supported sugar companies in the previous calendar year. Sugar prices have climbed to a nearly six-year high at the wholesale market on tight stock positions amid speculative buying by stockists and bulk consumers.
Share prices of sugar companies such as Dwarikesh Sugar and Dalmia Bharat have surged 79 per cent and 74 per cent, respectively, since October 2016. Other stock such as EID Parry and Tata Global have advanced 21 per cent and 2 per cent between October 1 and February 7.
However, shares of Godfrey Phillips and United Spirits have slipped 17 per cent and 7 per cent, respectively, in the same period.
EID Parry reported a 22-fold rise (up 2,083 per cent YoY) in net profit at Rs 131.85 crore for the quarter ended December 31, 2016 against Rs 6.04 crore reported for the corresponding quarter last year.
Similarly, Dwarikesh Sugar registered a 1,391 per cent year-on-year rise in net profit at Rs 42.35 crore from Rs 2.84 crore reported for the same quarter a year ago.
For the October-December period, Dalmia Bharat reported a 181 per cent year-on-year rise in net profit at Rs 47.63 crore from Rs 16.95 crore reported for the same period last year.
United Spirits, Godfrey Phillips and Tata Global Beverages reported 297 per cent, 208 per cent and 119 per cent year-on-year growth in profit for the quarter ended December 31, 2016.
Prime Minister Narendra Modi on November 8 surprisingly banned currency notes of Rs 500 and Rs 1,000 denominations to check black money. As a result, immediate consumption themes took a hit.
Market experts say firm prices of the sweetener supported sugar companies in the previous calendar year. Sugar prices have climbed to a nearly six-year high at the wholesale market on tight stock positions amid speculative buying by stockists and bulk consumers.
Share prices of sugar companies such as Dwarikesh Sugar and Dalmia Bharat have surged 79 per cent and 74 per cent, respectively, since October 2016. Other stock such as EID Parry and Tata Global have advanced 21 per cent and 2 per cent between October 1 and February 7.
However, shares of Godfrey Phillips and United Spirits have slipped 17 per cent and 7 per cent, respectively, in the same period.
EID Parry reported a 22-fold rise (up 2,083 per cent YoY) in net profit at Rs 131.85 crore for the quarter ended December 31, 2016 against Rs 6.04 crore reported for the corresponding quarter last year.
Similarly, Dwarikesh Sugar registered a 1,391 per cent year-on-year rise in net profit at Rs 42.35 crore from Rs 2.84 crore reported for the same quarter a year ago.
For the October-December period, Dalmia Bharat reported a 181 per cent year-on-year rise in net profit at Rs 47.63 crore from Rs 16.95 crore reported for the same period last year.
United Spirits, Godfrey Phillips and Tata Global Beverages reported 297 per cent, 208 per cent and 119 per cent year-on-year growth in profit for the quarter ended December 31, 2016.
Prime Minister Narendra Modi on November 8 surprisingly banned currency notes of Rs 500 and Rs 1,000 denominations to check black money. As a result, immediate consumption themes took a hit.
