E.I.D.-Parry India's quarterly loss widens on lower sugar prices, higher expenses

E I D-Parry (India)

11/02/2025 14:31

Feb 10 (Reuters) - Indian sugar maker E.I.D.-Parry  EIDP.NS  reported a wider third-quarter loss on Tuesday, hurt
by lower prices and higher expenses. 
    Its loss before exceptional items and tax stood at 785.6 million rupees ($9 million) in the three months ended
December 31, compared with a loss of 204 million rupees a year earlier. 
    The company incurred a one-time charge worth 768.3 million rupees in the quarter, related to impairment of investment
in its unit. 
    Revenue from operations increased 27% to 8.48 billion rupees, while expenses surged 34% to 9.41 billion rupees. 
    For further results highlights, click (Full Story).
    
    KEY CONTEXT 
    Sugar prices in India fell to an 18-month low in the quarter due to ample supplies, prompting the industry to demand
revision in minimum selling price to limit losses and improve margins, thereby ensuring timely payments to the farmers,
Reuters reported last year.
    In January, the government allowed higher exports of the product to help revive sugar prices. 
    Analysts at Elara Capital said E.I.D.-Parry's sales in the October-December period dropped 7% on-year, but increased
27% sequentially on festival season demand. 
    
    PEER COMPARISON 
                                   Valuation (next 12     Estimates (next 12     Analysts' sentiment              
                                   months)                months)                                                 
                      RIC          PE     EV/EBITDA       Revenue     Profit     Mean     No. of   Stock to       Div
                                                          growth (%)  growth     rating*  analyst  price          yield
                                                                      (%)                 s        target**       (%)
 E I D-Parry (India)   EIDP.NS     11.05  4.44            10.67       NULL       Strong   1        0.90           0.94
                                                                                 Buy                              
 Dalmia Bharat Sugar   DLMI.NS     9.04   5.24            9.69        15.55      Hold     1        0.53           1.39
 and Industries                                                                                                   
 Dwarikesh Sugar       DWAR.NS     12.12  5.32            18.90       91.55      Buy      2        0.79           NULL
 Industries                                                                                                       
 Balrampur Chini       BACH.NS     15.32  9.61            11.61       26.96      Strong   5        0.68           0.99
 Mills                                                                           Buy                              
    
* 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
    
    OCTOBER-DECEMBER STOCK PERFORMANCE 
    
    
    -- All data from LSEG 
    -- $1 = 86.6970 rupees

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 (Reporting by Manvi Pant in Bengaluru; Editing by Vijay Kishore)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))