Update
Q1 FY 2022-23
Dalmia Bharat Sugar and Industries Limited – one of the fastest-growing sugar businesses in India has presented its Q1 FY 2022-23 numbers today. Here are the details –
On a consolidated basis, the revenue of the company stood at INR 938.35 Cr for the quarter ended 30 June 2022 as compared to INR 856 Cr for the previous quarter ended 31 March 2022, registering a growth of 9.62% Q-O-Q basis.
However, Dalmia Bharat Sugar has reported revenue of INR 818.52 Cr a period one year ago, registering a growth of 14.64%
Looking at the segment-wise revenue, the Sugar business registered the highest growth on a Y-O-Y basis (INR 801.91 Cr v/s INR 744.32 Cr), followed by the Distillery business (INR 264.66 Cr), and the Power business (INR 77.43 Cr)
Total Expenses of the Company –
INR 875.85 Cr as on 30 June 2022,
INR 710.13 Cr as on 30 June 2021,
INR 762.76 Cr as on 31 March 2022
EBIDTA of the company stood at INR 109 Cr for Q1 FY23 which was INR 146 Cr a period one year ago, a change of (-26 percent) Y-O-Y.
EBIDTA for the Q1 ended 30th June 2022 was impacted due to lower margins on account of higher cost of production (largely on account of the cane price increase), power tariff reduction in Maharashtra, and losses on account of consumer business.
Profit After Tax
The Company, on a consolidated basis, has reported a net profit of INR 49.28 Cr for the Q1 FY23 as against INR 56.54 Cr for the period ended 31 March 2022, a fall of 12.84% Q-O-Q basis. While the year-on-year PAT of the company de-grew by 60.39% (INR 124.40 Cr for a period one year ago)
EPS of the company stood as follows –
INR 6.09 as on 30 June 2022,
INR 6.86 as on 30 June 2021,
INR 15.35 as on 31 March 2022
Daily Chart –
dalmia bharat sugar share price closed at INR 375.90 (UP 2.15%) with a volume of 2,04,582 shares on the National Stock Exchange.
Dalmia Bharat Sugar and Industries Limited is a value pick stock of Finblab and has given 7x returns when compared to ATH of INR 570 and currently 4.5x returns from the recommended price of INR 78.
Final Comment: The Company has posted muted numbers, where the bottom line of the company looked stressed due to a change in inventory. However, keeping its expansion in mind (expanded its distillery capacity from 8.5 crore litre to 18 crore litre. It would further increase its distillery capacity to 24 crore litre in the next year through one grain-based & one molasses-based distillery) Finblab maintains a Positive view on the company.
Also Read: Q1 Numbers of HIL Limited
3 October 2018
Company Background –
Dalmia Bharat Sugar Industries Limited belongs to a well-known Dalmia Bharat Group and is engaged in the Sugar business. In fact, the company is one of the largest sugar manufacturer with 22,500 TCD cane crushing capacity.
Business:
The Company foray into sugar business in the mid-nineties and the first unit of 2500 TCD was set up at village Ramgarh (U.P) in 1994.
During 2006-07, the company embarked on a major growth path by setting up two Greenfield plants at Jawaharpur (U.P) and Nigohi (U.P) and expanding existing facilities at Ramgarh unit.
Today, Dalmia Bharat Sugar Industries Limited is a fully integrated company with 79 MW of cogeneration capacity & a distillery of 80 KLPD. The company also have facilities for processing of raw sugar.
Company Products:
Sugar:
- At Dalmia Sugar, the company produces Double Sulphitation Sugar which is graded according to size and colour of sugar.
- M-31 grade of sugar which is most popular in the northern state is manufactured by us at all our sugar units.
- The company also make some quantities of L 30 and L 31 which is much bolder grain sugar and is very popular in states of Haryana and Punjab.
- The company also make S 31 grade sugar and is catered to biscuit Manufacturers; Quality standards are matched to the quality standards of Coke, Pepsi, Britannia and many more giant FMCG companies.
Molasses:
Molasses is the by-product obtained in the preparation of sugar through repeated crystallization. It is an important bi-product of the sugar industry and is used extensively for the manufacture of ethyl alcohol.
Alcohol:
Molasses is distilled to produce different kinds of alcohol and Dalmia Bharat Sugar Industries Limited produces 3 kinds of alcohol.
Organic Manure:
- The Company’s bio-composting facility can produce about 30,000 MT organic manure per annum (approx.)
- Dalmia Bharat Sugar Industries Limited has adequate in-house availability of press mud, key raw material, from its own sugar factories to ensure smooth production of good quality organic manure. The Company’s main customers of organic manure are farmers and tea estates.
Dalmia Bharat Sugar – Client List
Over the years, Dalmia Bharat Sugar Industries Limited has reached a number of key customers through its various initiatives. The Company is a preferred sugar supplier to brand-enhancing institutional giants such as –
Sugar Business
- Britannia
- Dabur India
- PepsiCo
- Bharti Wall mart
- Parle
Alcohol Business
- Indian Glycol limited
- Allied Blenders & Distilleries Pvt. Ltd
- United Breweries
- Jubilant
Apart from this, the company has a strong customer base of wholesale agents in the state of U.P, Bihar, Delhi, Haryana, and West Bengal for a regular supply of sugar.
Listed On
The shares of Dalmia Bharat Sugar & Industries Limited are listed for trading on National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) in India.
Stock Info – Dalmia Bharat Sugar & Industries
Share Holding Pattern
Financials – Dalmia Bharat Sugar Industries
Future Prospects
Dalmia Bharat Sugar & Industries Limited is of the view that sugar sector holds immense potential in providing food & energy security for the country which is going to be one of the most important developmental prerequisites in next 5-10 years.
With an integrated revenue model, a strong and entrenched presence in the sugar industry, the company foresee a future with significant unlocking of value and sustained rewards for its team, its vendors, its stakeholders and the communities it work in.
The Company wants to be among the top two producers in the industries the segment it operate in.
Conclusion
With the total cane crushing capacity of 22500 TCD, Dalmia Bharat Sugar & Industries Limited one of the leading sugar producers in India.
Company is belonging to a well-known group (DALMIA Bharat Group), having sound management, and promoters have steady stake (more than 74%) since last 4 quarters. Along with that some of the reputed names like LIC and others have stake in the company.
In a bid to boost ethanol production, the Government is planning to raise the amount of subsidised loans to sugar mills by 38 percent, and under this scheme, Dalmia Bharat Sugar will likely to bag loan of Rs 198 crore (the mills will get an interest of up to 6% or half of the interest they pay for loans offered to expand their capacity, whichever is lower)
Considering the above mentioned factors, Dalmia Bharat Sugar & Industries Limited looks interesting at INR 72. FinBlab recommends investing in a stock keeping a long-term view (more than 3 years) in mind. (One can accumulate on decline also)
Also Read –
1) Top 5 Reasons Why Indian Rupee Is Falling Against Us Dollar
2) Top 6 Reasons Why Companies Go For A Share Buyback
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