EID Parry rises 4%, sees revenue touching Rs 1,200 crore by FY25

Shares of EID Parry (India) rose nearly 4 percent in early trade on June 1, buoyed by the company’s strong growth guidance for the upcoming fiscal years. The strong growth guidance from the management also offset concerns over the decline in the company’s fourth quarter net profit.

At 12.39 pm, shares of EID Parry (India) were trading at Rs 485.30 on the National Stock Exchange, with gains of 3 percent from the previous close.

Volumes in the counter were also high as three lakh shares changed hands on the exchanges, as against the one-month daily traded average of two lakh shares.

The financials

In the fourth quarter, the sugar manufacturer reported a consolidated net profit of Rs 286.90 crore, a 33 percent year-on-year decline. The bottomline was largely dragged by a weak operational performance due to elevated input costs.

Regardless, total income surged 19.26 percent on year to Rs 6,865.28 crore. Moreover, the management remains hopeful to bring about a turnaround in the company’s fortunes.

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The management aims to take revenue from Rs 650 crore in FY23 to Rs 1,200 crore in FY25. This growth will be driven by an expansion in distillery capacity, with a target of 14 crore liters of ethanol production in FY24 and 17 crore litres by FY25.

“Expanding distillery capacity will lead to higher volumes of up to 18 crore litres of alcohol,” Muthiah Murugappan of EID Parry India said in an interview to CNBC-TV18.

Adding to it, Murugappan told CNBC-TV18 that he hopes to see margin expansion in the distillery segment in FY24, with revenue contribution from the vertical going up to 40 percent over the next two years.

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