EID Parry (India) Ltd., a leading sugar and bio-products manufacturer, has reported a 41% decline in its second-quarter net profit to ₹34.6 crore, despite a 15% increase in revenue. The company’s revenue from operations rose to ₹1,044.6 crore in the quarter ended September 2024, from ₹906.8 crore in the corresponding period last year. However, it’s profit before tax (PBT) declined 38% to ₹53.1 crore.
The decline in profitability was attributed to higher raw sugar costs, increased power and fuel expenses, and reduced realizations from the company’s bio-products segment. EID Parry’s sugar sales volume increased 14% to 2.5 lakh tonnes, while its bio-products segment revenue grew 22%.
Managing Director, V.R. Mohan, stated, “The quarter saw challenging market conditions, with higher input costs and reduced realizations. We are taking steps to improve operational efficiencies and reduce costs.” EID Parry’s shares closed at ₹235.10 on the BSE, with a 52-week high of ₹305.00 and a 52-week low of ₹190.00.
Analysts expect the sugar industry to face near-term challenges due to volatile global prices and domestic policy changes. However, EID Parry’s diversified portfolio, including its bio-products segment, is expected to support long-term growth.
The company’s focus on sustainability initiatives, such as renewable energy and organic farming, is also expected to drive growth. EID Parry has set a target to generate 50% of its power requirements from renewable sources by 2025.
Despite the decline in Q2 profit, EID Parry remains one of India’s largest sugar producers, with a strong presence in the bio-products segment. The company’s efforts to improve operational efficiencies and reduce costs are expected to yield positive results in the coming quarters.
EID Parry is a prominent agribusiness company in India, with a legacy that dates back over 225 years. Headquartered in Chennai, the company is a part of the Murugappa Group and is primarily known for its leadership in sugar manufacturing, ethanol production, and bioenergy solutions. EID Parry is a pioneer in integrated sugar operations, with capabilities spanning sugarcane cultivation, sugar refining, and value-added products like nutraceuticals.
The company is committed to sustainability, utilizing by-products to generate renewable energy and produce organic fertilizers. With a strong focus on innovation and farmer engagement, EID Parry continues to play a vital role in India’s agro-industrial ecosystem, driving economic and environmental progress.
