E I D Parry India (EIDPARRY) Q2 24/25 earnings summary

Executive summary

• One of India's leading sugar companies with a strong ESG profile and market leadership in Southern India, operating 6 sugar plants and 1 distillery across 3 states.

• Consolidated revenue for Q2 FY25 rose 3% YoY to ₹9,330 crore; H1 FY25 revenue was flat at ₹16,077 crore compared to last year.

• Consolidated EBITDA for Q2 FY25 declined 14% YoY to ₹1,028 crore; H1 EBITDA fell to ₹1,556 crore from ₹1,856 crore YoY.

• Strategic focus on optimizing cane volume, expanding consumer products, and maximizing ethanol blending opportunities.

• Company is transforming from a sugar enterprise to a comprehensive food, nutrition, and bioenergy business.

Financial highlights

• H1 FY'25 consolidated revenue rose to ₹3,915 Cr from ₹3,404 Cr year-over-year.

• Sugar segment H1 FY'25 revenue increased to ₹3,108 Cr, while distillery revenue grew to ₹544 Cr.

• H1 FY'25 PBT dropped to ₹15 Cr from ₹175 Cr in H1 FY'24, mainly due to lower cane volume, sugar sales, and higher input costs.

• Distillery segment revenue grew 48% YoY in Q2 FY25 to ₹281 crore, driven by new capacity additions.

• Standalone profit after tax for Q2 FY25 was ₹28 crore, down from ₹86 crore YoY; H1 standalone loss after tax was ₹50 crore vs profit of ₹40 crore YoY.

Outlook and guidance

• Ethanol blending target for ESY 24-25 is 18%, with government policy now allowing production from multiple sugarcane sources.

• Sugar year 24-25 projected to be in surplus globally, with India's production estimates evolving positively due to good monsoon.

• CPG turnover grew 76% YoY in Q2 FY25, supported by new branded staples; sweetener range grew 21% YoY.

• Company is expanding into FMCG with premium grains and branded staples, aiming for a broader food and nutrition market presence.