Dalmia Bharat Sugar and Industries announced audited results for Jan-March quarter

Dalmia Bharat Sugar and Industries Limited today announced its audited results for the quarter and year ended 31st March 2019. Dalmia Bharat Sugar and Industries Limited today announced its audited results for the quarter and year ended 31st March 2019.

Financial Year's Performance

During the year, Jawaharpur distillery has been successfully expanded to 120 KLPD from 80 KLPD and Nigohi 60 KLPD distillery has been commissioned in the month of January 2019. With this, the company will have optimum integrated capacities.

In the sugar segment, there is a slight dip in profitability on account of lower sugar prices as compared to the last year. Cogeneration segment profitability has improved on account of higher volumes. With enhanced capacities, the company's distillery segment is a major growth driver with a significant increase in profitability.

The Board of Directors has recommended a dividend of Rs. 1.60 per share of face value Rs. 2.00 each. The same is subject to the approval of the shareholders in the Annual General Meeting.

The outlook of Sugar Industry:

India sugar production is estimated at a record level of 330 LMT for the current season and consequently, the industry is beset with highest ever inventory. This would continue to put pressure on sugar prices.

The Central and State Governments have taken several proactive measures in the recent past including fixation of MSP, soft loans for cane price payments and setting up of ethanol plants, Bio-fuel policy, production subsidy and export subsidy etc., which have helped the industry to wriggle out of the grim situation. Considering the level of inventory, the Government would need to continue to incentivise B heavy molasses ethanol prices, export incentives and fixation of rational cane prices.