K K Birla Group's Sugar Firms Face Declining Profits Amid Mixed Industry Outlook

K K Birla group's sugar companies, Magadh Sugar & Energy and Avadh Sugar & Energy, reported declining net profits in the third quarter of the financial year ending December 31, 2024, despite increased revenues. Strategic investments aim to address challenges like lower cane yields impacting production in key states.

K K Birla group's sugar companies, Magadh Sugar & Energy and Avadh Sugar & Energy, have encountered a downturn in their net profits for the third quarter of the current fiscal year, which concludes on December 31, 2024.

Magadh Sugar's net profit fell to Rs 21 crore, down from Rs 39 crore in the equivalent quarter the previous year, despite a boost in their total income to Rs 285 crore from Rs 219 crore in the same period. Similarly, Avadh Sugar's net profit dropped to Rs seven crore from Rs 22 crore in the previous corresponding quarter, even as their total income increased to Rs 619 crore from Rs 595 crore in the year before.

C S Nopany, co-chairperson of Avadh Sugar, highlighted a complex sugar season for 2024-25. Challenges such as reduced cane yields and recovery rates in major states like Uttar Pradesh, Maharashtra, and Karnataka have adversely affected production. Nopany emphasized that both companies will persist in strategic investments to boost production capacity and create shareholder value.

(With inputs from agencies.)