Murugappa Group company, EID Parry India Ltd, has reported a significant increase in net loss for the quarter ended December 31, 2024, with a standalone loss of ₹146 crore, a sharp rise from ₹14 crore in the corresponding quarter of the previous year. The widening loss in Q3FY25 included a ₹77 crore provision for impairment of investment in its subsidiary.

The company reported a net profit of ₹28 crore in the September 2024 quarter.

Standalone revenue from operations was higher at ₹848 crore in Q3 of this fiscal when compared with ₹668 crore in the year-ago quarter. The company reported a loss before tax and exceptional items of ₹79 crore as against a loss before tax and exceptional items of ₹20 crore.

Standalone performance

Commenting on the standalone performance, Muthiah Murugappan, Whole-time Director and Chief Executive Officer said the sugar segment reported a degrowth of 10 per cent in its revenue at ₹391 crore in Q3FY25 as against ₹435 crore in the year-ago quarter due to lower release quota.

“The sugar segment registered a loss of ₹49 crore as compared to a loss of ₹14 crore on account of lower cane volume (12.70 lakh tonnes in December 2024 quarter vs 17.80 lakh tonnes in December 2023 quarter), lower recovery and higher cane cost. The selling prices continued to be under pressure resulting in higher loss for the current quarter,” he added.

However, the distillery segment reported a 64 per cent rise in revenue at ₹289 crore (₹176 crore), benefitting from enhanced capacity utilisation after completion of expansion projects and the new distilleries becoming operational. Although revenues have increased, profitability remains under pressure due to higher input costs.

The Nutraceuticals segment reduced its loss by ₹3 crore after the commencement of exports to Europe consequent to receipt of the European certification.

For the 9-months of this fiscal, the company’s standalone loss after tax stood at ₹196 crore (including ₹77 crore provision for impairment of investment in the subsidiary) when compared with a net profit of ₹20 crore in the same period of previous fiscal. Revenue from operations stood at ₹2354 crore as against ₹2092 crore.