Detailed Narrative
Sugar Segment: Recovery Gains Amidst Volume Pressure
The sugar segment saw a decline in crushing volumes to 12.7 lakh metric tons, down from 17.8 lakh metric tons YoY, primarily because Tamil Nadu operations were shifted to the fourth quarter. Despite lower volumes, the recovery rate improved significantly to 10.78% from 10.14%. However, the landed cost of cane increased to ₹3,899 per metric ton due to higher Fair and Remunerative Price (FRP) impacts, which rose from ₹3,152 to ₹3,400 for the current season.
Distillery Outperformance Driven by Ethanol
The distillery segment was a major growth driver, with revenue increasing 64% YoY to ₹290 crores. Ethanol sales volume nearly doubled to 304 lakh litres compared to 159 lakh litres in the previous year. Price realization also improved to ₹65.83 per litre from ₹62.82. The company is strategically moving toward a multi-feed model, with 120 KLPD of its 582 KLPD total capacity now capable of processing grain (rice/maize) or molasses.
Refinery Segment Faces Margin Squeeze
The refinery business reported a challenging quarter with revenue falling to ₹915 crores from ₹1,597 crores YoY. The segment posted a PBT loss of ₹18 crores, a sharp reversal from the ₹17 crores profit in the prior year. Management attributed this to lower global spreads and a deferment of shipment volumes from December to January. They expect Q4 to remain challenging but anticipate a recovery in global premiums in the next financial year.
CPG Segment: Scaling Branded Staples
The Consumer Products Group (CPG) achieved a turnover of ₹236 crores, representing over 70% growth. Branded staples contributed ₹87 crores to this total. Management is focusing on the four southern states for distribution expansion and aims for high single-digit EBITDA margins by the end of the decade. Currently, non-sweetener branded products account for approximately 37% of total branded sales.
Strategic Asset Monetization: IPL Stake Sale
Management confirmed they are in the process of selling approximately 6 lakh shares of Indian Potash Limited (IPL), an unlisted entity. The transaction is expected to yield around ₹180 crores. This move is part of a broader strategy to unlock value from non-core assets and strengthen the standalone business's balance sheet, which has been under pressure from refinery losses and high borrowing costs.