Govt has restricted ethanol production so sugar production has gone up… but sugar sale quotas are also controlled and hence sales are down but sugar stock has gone up.
DBOL has more than 1,000 cr worth of sugar stocks (much higher than last year), even ethanol stock has gone up… this will lead to higher sales in Q1 and Q2 - that too at higher sugar prices so the company will benefit. effectively about 400 cr of sales (and 40cr of profit) which could have been done in Q4 has gone to next year.
Recovery has gone up by 0.9% - which is huge jump… this has led to higher margins in Q4 and margins will be higher in Q1 and Q2 also. Next year recovery will be even higher as last year, more farmers have replaced cane variety.
even grain based ethanol wll add to sales and profits in FY 25.
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