Shares of EID Parry (India) rallied Tuesday early trade as investors cheered strong earnings performance of the sugar maker.
EID Parry reported higher profit at Rs 317.8 crore in fiscal second quarter to September (Q2FY21) against Rs 181.6 crore. It reported revenue which rose to Rs 5,836.2 crore from Rs 5,675 crore YoY.
It’s performance was better in the second quarter as compared to corresponding quarter of previous year due to better realisation and the cost reduction measures which continued from the first quarter.
The company was successful in meeting the export obligation for sugar season 2019-20 under MAEQ scheme. Sugar prices remained in the same levels of that of Q1 2020-21 and release order mechanism continued to be in place.
The government has increased the FRP by Rs.100 per MT for the sugar season 2020-21 without any increase in MSP of sugar. Though the government has announced increase in ethanol procurement rates varying between Rs 1.90 and Rs 3.34 per litre depending on the grades of ethanol for the period December 2020 to November 2021, Industry is expecting an increase in MSP for sugar for covering the increase in cane and other costs for healthy survival .
Availability of cane is expected to be better in Karnataka for sugar season 2020-21 as compared to previous sugar season while in Tamil Nadu and Andhra it is expected to be in same lines as that of last year.
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