Dalmia Bharat Sugar and Industries 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 Rs 54.9 crore for the quarter from Rs 11.71 crore a year earlier.
Revenue from operations jumped over 26 per cent to Rs 732 crore.
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 per cent 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 posted a drop in second-quarter profit. Balrampur Chini Mills’ results are due on Tuesday.
