Net profit of Dalmia Bharat Sugar and Industries dipped 16 per cent to ₹52 crore in the quarter ended in March 2021, as compared to ₹62 crore in the corresponding quarter in the previous financial year, a company statement said.

Total revenue of the company fell by 12 per cent to ₹501 crore as compared to ₹567 crore in the same quarter last fiscal.

However, for the whole year it posted a 40 per cent increase in net profit to ₹270 crore up from ₹193 crore in 2019-20. There was 26 per cent increase in its revenues as well at ₹2,740 crore, mainly because of better sugar prices in domestic and export markets and increased ethanol sales. It said it diverted 60,000 tonnes of sugar towards ethanol this year, as it increased ethanol production by 35 per cent to 8.6 crore litres.

The company Board of Directors has proposed a final dividend of 150 per cent, that is ₹3, subject to shareholders' approval.

Dalmia Bharat repaid the term loans worth ₹245 crore during the year, bringing down its debt exposure to ₹276 crore.

The statement said the short and medium outlook for the sector looks promising. In Sugar season 2020, sugar inventory is lower at 10.7 million tonnes as against 14.5 million tonnes in the previous year, mainly due to exports. This is expected to go down further in the current season to 9.2 million tonnes mainly on account of higher diversion of sugar to ethanol and exports, it said.

“Sugar industry is well poised to benefit both from global and domestic factors. Tight global demand supply situation, favourable government policies and push for higher ethanol blending in India will keep the inventory under control,” Dalmai Bharat said.

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