Dhampur Sugar Mills' consolidated net profit fell 4.4% to Rs 104.08 crore on 23% jump in net sales to Rs 1,066.45 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax tanked 44.8% to Rs 73.60 crore in Q4 March 2020 as against Rs 133.27 crore in Q4 March 2019. Current tax expenses dropped 55.6% to Rs 10.40 crore in Q4 March 2020 as against Rs 23.42 crore paid in Q4 March 2019. The Q4 result was declared after trading hours yesterday, 2 June 2020.
The company said that the COVID-19 pandemic impacted the domestic demand of sugar. As per initial estimates, the pandemic is said to impact the overall domestic sugar consumption by 1 to 1.5 million tonnes. The average realisation of sugar prices during FY21 may be lower in comparison to FY20, the firm anticipates.
The Government had taken various measures to support the industry including fixation of minimum support price (MSP) for sugar at Rs 31 per kg along with fixation of monthly sale quota and fixation of export obligation with other incentives. The other main products manufactured by the company i.e. ethanol and power are not expected to be too adversely impacted, the firm added.
Dhampur Sugar Mills is an integrated sugarcane processing company. The company is engaged in the manufacturing and selling of sugar, power and chemicals. The company operates in three segments: sugar, distillery and co-generation.
Shares of Dhampur Sugar Mills rose 1.84% to Rs 105.10 on BSE. The scrip hovered in the range of Rs 103.85 to Rs 108 so far.
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