MagadhSugarQ2FY22 Kolkata/IBNS: The Board of Directors of Magadh Sugar & Energy Limited (MSEL) (BSE: 540650 /NSE: MAGADSUGAR) at its meeting held on November 10, took on record the audited financial results for the quarter ended September 30.
Financial Performance Highlights Q2 FY22
▪ Total Income was Rs. 198 crore as against Rs. 212 crore in Q2FY21
▪ EBITDA stood at Rs. 11 crore as against Rs 5 crore in Q2 FY21
▪ PAT at Rs 3 crore as against Rs 10 crore in Q2 FY 21
Commenting on the results, C.S. Nopany, Chairperson, Magadh Sugar & Energy Ltd said: “Erratic and heavy rainfall has had a significant impact on the agricultural scenario in Bihar with the sugarcane crop severely being affected due to floods and unseasonal heavy rains in October 2021."
While this will have an impact on sugar and ethanol production in Bihar, the firming of sugar prices should help the industry to reduce the impact of the fall in production.
The pragmatic policies of the Central and the State Governments of encouraging ethanol production have helped in reducing the sugar glut in India by diverting sugarcane into ethanol production and reducing sugar production.
Furthermore, strong exports due to a global shortfall in sugar production has also helped improve the demand-supply equation.
Magadh Sugar is also setting up a greenfield Distillery in the Sidhwalia plant which is likely to come into production in December 2021.
This will certainly help in enhancing the operational cash flow and reduce the company’s dependence only on sugar and also diversify its product portfolio.
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