India's Dalmia Bharat Sugar posts six fold rise in Q2 profit

Dhampur Sugar Mills

06/11/2023 12:07

BENGALURU, Nov 6 (Reuters) - India's Dalmia Bharat Sugar and Industries Ltd  DLMI.NS  on Monday said its September quarter profit
rose more than six fold, aided by strong demand and higher domestic prices. 
    The New Delhi-based company's profit from continuing operations rose to 549 million rupees ($6.60 million) for the quarter from 117.1
million rupees a year earlier.
    Revenue from operations jumped over 26% to 7.32 billion rupees.
 
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3C71QE
        
  
        KEY CONTEXT
    Analysts said that a rise in domestic sugar prices would be the main driver for earnings growth. Higher prices help improve the margins
of sugar makers, allowing them to make payments to farmers on time.
    Sugar prices in India are near multi-year highs and production is likely to fall 8% to 33.7 million metric tons in the 2023/24 marketing
year, because of weak monsoon in the top cane-growing states of Maharashtra and Karnataka. 
    Dalmia Bharat Sugar also reported a year-over-year rise in profit in the previous three quarters.
    Dalmia's quarterly profit jump comes at a time when peer Dhampur Sugar Mills  DAMS.NS  posted a drop in second-quarter profit. Balrampur
Chini Mills'  BACH.NS  results are due on Tuesday.  

    PEER COMPARISON 
                                Valuation (next 12   Estimates (next 12 months)      Analysts' sentiment                       
                                months)                                                                                        
                    RIC         PE         EV/EBITD  Revenue growth  Profit growth   Mean        # of        Stock to price    Div yield (%)
                                           A                                         rating*     analysts    target**          
 Dalmia Bharat       DLMI.NS    10.69      6.39      8.69            NULL            Buy         1           0.84              0.88
 Sugar and                                                                                                                     
 Industries Ltd                                                                                                                
 Balrampur Chini     BACH.NS    13.56      10.65     12.12           36.29           Buy         4           0.93              0.59
 Mills Ltd                                                                                                                     
 Dwarikesh Sugar     DWAR.NS    9.87       5.71      0.84            20.87           Strong Buy  4           0.78              2.21
 Industries Ltd                                                                                                                
 Dhampur Sugar       DAMS.NS    8.67       5.26      NULL            NULL            Buy         1           0.76              1.94
 Mills Ltd                                                                                                                     
 
    
 * 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
    
    JULY-SEPTEMBER STOCK PERFORMANCE
  
 
    -- All data from LSEG
    -- $1 = 83.1830 rupees
 
 
 

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
DLMI JULY-SEPT    https://tmsnrt.rs/3u1I5AG
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Yagnoseni Das in Bengaluru)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))