Working capital increase has been substantial – which will lead to jump in interest cost. this will be the case for all sugar companies. Sugar sales will be higher due to higher prices as volume increase is only marginal. Impact of huge drop in ethanol sales will be very negative… again for all sugar companies.
Maize based ethanol plants are even worse off. pl see interview of BCL. I have been highlighting these challenges for many months.
https://www.youtube.com/watch?v=oBs0c7CckFk
The only way forward for ethanol plants (sugar and grain based) is closure of a few plants as the industry is not sustainable anymore.
The companies focusing on other products based on sugarcane will do much better in the future – like Balrampur (bio plastics), Triveni (IMFL), etc.
Sugar/ ethanol companies like Dhampur Bio, Dhampur Sugar will have to focus on reducing production costs to increase margins.
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