“After facing an adverse operating environment due to a record domestic sugar production last year, the industry is steadily recovering. This revival has been supported by the Central and State Governments who have effectively intervened and taken several initiatives over the past few months. We are hopeful that the Government will continue to take more proactive measures and put in place a rationale cane pricing policy which ensures the long-term sustainability of the sector,” said Vivek Saraogi, Managing Director, Balrampur Chini Mills.
Total 15 sugar companies thus far announced their July-September quarter (Q2FY19) results, have posted 86% year-on-year (Y-o-Y) declined in their aggregate net profit of Rs 529 million. These companies had posted a combined profit of Rs 10.38 billion in the same quarter last fiscal. Total sales down 7% Y-o-Y at Rs 124 billion from Rs 134 billion in the corresponding quarter of previous year.
"Depressed sugar prices due to surplus production in the country continued to impact the performance of the company in Q2FY19 together with reduced sale volumes on account of the Release Order mechanism. Also, heavy rains during the quarter affected the distillery operations in Karnataka and Andhra Pradesh units,” EID Parry said in a press release.
The Government of India has been taking various supportive measures in order to provide stability to the sugar prices, in the form of buffer stock mechanism, minimum support price for sugar, export quota and related subsidy and an upward revision of ethanol price including ethanol supply from B heavy molasses and cane juice. Further, Tamilnadu Government has taken positive steps to increase the domestic sales of alcohol within the state by regulating import from other States. These would augur well for the Company in the coming quarters, it added.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| DALMIA BHARAT | 108.90 | 96.80 | 12.50 |
| KCP SUGAR &INDS. | 21.50 | 19.20 | 11.98 |
| TRIVEN.ENGG.IND. | 54.30 | 49.40 | 9.92 |
| DHAMPUR SUGAR | 176.65 | 162.65 | 8.61 |
| BALRAMPUR CHINI | 117.75 | 108.90 | 8.13 |
| BANNARI AMM.SUG. | 1899.00 | 1758.40 | 8.00 |
| UTTAM SUG.MILLS | 153.00 | 142.75 | 7.18 |
| BAJAJ HINDUSTHAN | 11.86 | 11.17 | 6.18 |
| THIRU AROOR. SU. | 31.70 | 29.95 | 5.84 |
| DCM SHRIRAM INDS | 219.90 | 207.85 | 5.80 |
| EID PARRY | 245.90 | 233.70 | 5.22 |
| AVADH SUGAR | 452.65 | 431.10 | 5.00 |
| MAGADH SUGAR | 108.60 | 103.45 | 4.98 |
| SIMBHAOLI SUGAR | 12.78 | 12.18 | 4.93 |
| UGAR SUGAR WORKS | 15.44 | 14.72 | 4.89 |
| KESAR ENTERPRISE | 31.30 | 29.85 | 4.86 |
| MAWANA SUGARS | 56.10 | 53.50 | 4.86 |
| DWARIKESH SUGAR | 29.25 | 27.90 | 4.84 |