As a result of robust earnings for the quarter ended 30th September 2016 as reported by the leading sugar producers of the country most of the sugar giants saw a huge surge (about 15 per cent) in the share price in the last few trading sessions.
Companies like Dhampur Sugars, Simbhaoli Sugars, Uttam Sugar, Thiru Arooran Sugars, Ponni Sugars, Rana Sugars, Sakthi Sugars and Mawana Sugars were among few trading higher between 5 per cent and 15 per cent.
Total five sugar companies namely Dalmia Bharat Sugar and Industries, Dwarikesh Sugar Industries, Oudh Sugar Mills, Upper Ganges Sugar & Industries and Parrys Sugar Industries – have so far declared their earnings for the quarter ended 30thSeptember 2016, reported a combined net profit of Rs 124 crores against Rs 7 crores in year ago quarter.
Oudh Sugar Mills was up 5 per cent at Rs 115 on BSE after the company reported a net profit of Rs 18.63 crores in Q2FY17 against loss of Rs 19.15 crores in Q2FY16. EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved to 18.62 per cent from 6.28 per cent.
According to a press release to BSE by Oudh Sugar Mills after five years of surplus sugar production in India teamed with aggressive sugar export strategy, domestic sugar production in sugar season 2015-2016 was marginally lower vis-à-vis domestic consumption and has consequently resulted in an improvement in the domestic sugar prices.
The company further added that during the period under review the Industry also saw a normalcy in sugar prices both domestically as well as the internationally.
Upper Ganges share price 7 per cent to Rs 389 on BSE in intra-day trade. The company posted net profit of Rs 18.39 crores in Q2FY17 against Rs 36 lacs in Q2FY16. EBITDA margin nearly doubled to 20.83 per cent from 10.86 per cent.
Oudh Sugar Mills and Upper Ganges Sugar & Industries are K. K. Birla Group companies.
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