Dhampur Sugar Mills Limited announced the transcript of its Earnings Conference Call held on Friday, 16 May 2025, concerning the Audited Financial Results for the period ended 31 March 2025.

• Financial Highlights (Consolidated FY25):

  • Revenue from operations stood at ₹2,656.4 crores, a slight increase from ₹2,646.8 crores in the previous year.
  • EBITDA was ₹187.3 crores, significantly lower than ₹293.4 crores last year.
  • Profit Before Tax (PBT) was ₹75.1 crores, down from ₹192.1 crores.
  • Profit After Tax (PAT) stood at ₹52.4 crores, a substantial decrease from ₹134.5 crores.
  • Cash Profit was ₹124.2 crores, compared to ₹218 crores in the previous year.

• Financial Highlights (Consolidated Q4 FY25):

  • Revenue from operations was ₹810.3 crores, up from ₹667.1 crores in the corresponding quarter last year.
  • PAT for the quarter was ₹49 crores, slightly down from ₹51.9 crores in Q4 FY24.

• Operational Performance & Challenges:

  • The company crushed 28.49 lakh tons of sugarcane in FY25, a 22% drop from 36.69 lakh tons in FY24, primarily due to red rot disease and lower yields from extended monsoon in 2023.
  • However, sugarcane crushed in sugar season '24-'25 (29.79 lakh tons) was marginally higher than sugar season '23-'24 (29.65 lakh tons), indicating that “the worst is behind us”.
  • Sugar production in FY25 declined by over 25% to 2.62 lakh tons (vs 3.51 lakh tons in FY24), partly due to diversion of 2.52 lakh tons of sugarcane for syrup-derived ethanol.
  • Sugar sales for FY25 increased by about 7% to 2.77 lakh tons (vs 2.58 lakh tons in FY24), with average realization at ₹38,736 per ton (up by ₹1,377 per ton).
  • Total ethanol production from all feedstocks in FY25 was 678.37 lakh liters (vs 1,189.78 lakh liters in FY24), impacted by restrictions on use of sugarcane syrup and B-Heavy molasses.
  • The company installed two new tetra pack lines for potable spirits, increasing production to 31.31 lakh cases in FY25 from 22.42 lakh cases in FY24.

• Revenue & Profit Mix (FY25):

  • Sugar contributed 56.5% of revenue and 28.1% of EBIT.
  • Ethanol contributed 20.5% of revenue and 13.3% of EBIT, down significantly due to lower sales volumes.
  • Power contributed 9.9% of revenue and 49.3% of EBIT.
  • Potable Spirits contributed 3.3% of revenue and 9.5% of EBIT.

• Management Commentary & Outlook:

  • The Board of Directors approved a buyback of equity shares up to a total consideration of ₹20 crores.
  • Management highlighted that intensive actions for cane development and yield improvement have been initiated, with major impact expected from FY27.
  • For FY26, ethanol production is expected to be higher due to increased feedstock availability and full utilization of the maize plant. However, margins may not see significant rises, and currently, making sugar is more profitable than B-heavy or syrup ethanol if prices remain stable.
  • The company anticipates a higher sugarcane crush in FY26 compared to FY25, though specific yield numbers will be clearer in 4-5 months.
  • The share of CO238 sugarcane variety, impacted by red rot disease, is actively being reduced, expected to be around 48% in Rajpura and 65% in Dhampur for FY26, with a target of not more than 10% in two years. New varieties are being introduced, though their performance compared to CO238 is still being assessed.
  • No major capital expenditure (capex) is planned for FY25-26; the focus remains primarily on cane development.
  • The Uttar Pradesh Electricity Regulatory Commission (UPERC) increased the power tariff by approximately ₹0.82 per unit, effective from 1 April 2024, implying potential arrears for FY25 in FY26.
  • Current ex-factory sugar price is around ₹40.5 per kg, expected to remain range-bound between ₹40.5 to ₹41.5 per kg for the next six months.
  • Achieving a net profit of ₹150 crores in FY26 is considered “a bit of a stretch” due to various market probabilities.
  • As on 31 March 2025, sugar inventory was 1.88 lakh tons, valued at ₹37,117 per ton.