Shree Renuka Sugars Ltd remains steadfast and progressing ahead

Shree Renuka Sugars Limited - one of India's largest sugar and GreenEnergy (ethanol and renewable power) producer and a subsidiary of Wilmar Sugar Holdings Pte Ltd, Singapore - has reported its financial performance for the quarter and nine months ended December 31, 2023.

Highlights of the results for the quarter and nine months are summarized below

Revenue Performance:

Revenue: The company reported a revenue of ₹5,195 lakhs in Q3FY24, representing a slight decrease of 3.0% from the previous quarter's revenue of ₹5,358 lakhs. However, on a year-on-year basis, there was a significant decline of 37.2% compared to Q3FY23 revenue of ₹8,283 lakhs. For the nine months ended FY24, the company reported revenue of ₹43,335 lakhs, indicating a decline of 1.2% from the corresponding period last year.

Operating Performance:

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Tiger Logistics reported an EBITDA of ₹398 lakhs in Q3FY24, down by 1.2% from the previous quarter's EBITDA of ₹403 lakhs. However, on a year-on-year basis, there was a notable decrease of 54.1% compared to Q3FY23 EBITDA of ₹884 lakhs. For the nine months ended FY24, the company's EBITDA stood at ₹2,592 lakhs, reflecting a decline of 7.2% from the corresponding period last year.

EBITDA Margin: Despite the challenging environment, Tiger Logistics maintained its EBITDA margin at 7.7% in Q3FY24, a marginal increase of 14 basis points (bps) from the previous quarter's margin of 7.5%. However, on a year-on-year basis, there was a decline of 300 bps compared to Q3FY23's margin of 10.7%. For the nine months ended FY24, the EBITDA margin improved significantly to 7.2%, up by 100 bps from the corresponding period last year.

Profitability:

Profit After Tax (PAT): The company reported a PAT of ₹374 lakhs in Q3FY24, marking a growth of 12.5% from the previous quarter's PAT of ₹333 lakhs. However, there was a substantial decrease of 55.1% compared to Q3FY23 PAT of ₹835 lakhs. For the nine months ended FY24, the company's PAT stood at ₹2,320 lakhs, reflecting a decline of 5.4% from the corresponding period last year.

PAT Margin: Tiger Logistics' PAT margin stood at 7.2% in Q3FY24, representing an improvement of 100 bps from the previous quarter's margin of 6.2%. However, on a year-on-year basis, there was a decline of 390 bps compared to Q3FY23's margin of 10.1%. For the nine months ended FY24, the PAT margin remained stable at 5.4%.

At Standalone level for 9MFY24,

- Total income for 9MFY24 up by 16% over the previous year from INR 65,993 to INR 76,763 Mn.

- The EBITDA for 9MFY24 stood at INR 4,785 Mn, an increase by 10% over last year of INR 4,368 Mn.

- Domestic sugar sales volume was up by 3% at 247K MT.

- Refinery exported 1,026K MT vs 1,062 MT in LY. Sales realisation rose to INR 56K/MT vs 43K/MT LY in view of the firm international values.

- Distillery produced during 9MFY24, 11.73 Crs litres Vs 12.16 Crs litres LY due to regulatory ban on ethanol production from cane juice and limiting production from BH molasses.

Mr Atul Chaturvedi, Executive Chairman, "The third quarter's results reflect our steadfast growth in our operations despite the regulatory headwinds of restricted production of Cane Juice & 'B' Heavy Ethanol. The global economy continues to face multiple macroeconomic and geopolitical shocks. Inspite, of all these challenges, Renuka is successfully progressing ahead.

Our total income for 9MFY24 has increased by 18 % over the previous year. The company posted a strong 9MFY24 performance driven by improved realizations across all segments.

Mr Sunil Ranka, Chief Financial Officer, "Renuka Consol has delivered a stable financial performance in the third quarter with an 9MFY24 EBITDA growth of 13 %. Refinery revenues and margins were better as compared to the previous year, which has enabled the EBITDA levels to move upwards to INR 4,743 Mn from INR 4,213 Mn in the previous year.

Cane production is likely to be lower in Karnataka and Maharashtra States. Our Anamika acquisition in U.P. (North India) has vindicated the strategy of de-risking geographically and the said unit has performed well as compared over last year which is included in the above results."

Shares of Shree Renuka Sugars Limited was last trading in BSE at Rs. 49.47 as compared to the previous close of Rs. 51.22. The total number of shares traded during the day was 2568235 in over 11593 trades.

The stock hit an intraday high of Rs. 51.50 and intraday low of 48.05. The net turnover during the day was Rs. 127427871.00.

Source : Equity Bulls

Keywords

ShreeRenukaSugars INE087H01022 Q3FY24 9MFY24 ResultUpdate