- India's sugar production for 2022-23 is estimated at 32.8 million tons, with 4.1 million tons diverted to ethanol.
- Domestic consumption is estimated at 27.9 million tons, with 6.4 million tons for exports, resulting in lower stocks.
- Expectation for the 2023-24 season is around 29 million tons of sugar production with about 4 million tons diverted to ethanol.
- Global sugar production in 2023-24 is expected to be around 175 million tons, leading to higher international sugar prices.
- Brazil is a major contributor to the global sugar market with an estimated production of about 41 million tons.
- Thailand's sugar production is lower this season compared to the previous year.
- The EU is estimated to produce about 16.8 million tons of sugar for the 2023-24 season.
- The company plans to expand sugar crushing capacity and reduce diversion to ethanol.
- Dhampur Bio Organics Limited reported Q2 FY24 revenue of INR 666 crores.
- EBITDA margin for the quarter was 3.1%, with sugar, biofuel, and country liquor segments contributing to revenue.
- The company is considering converting an existing distillery into a multi-feed distillery.
- Rainfall has not adversely affected the company's cane planting areas.
- The government is expected to maintain export quotas due to lower production.
- The company's sugar realization is around INR 38.5 per ton ex-factory.
- The company has shifted from sugar syrup-based ethanol to B-Heavy and ENA, impacting realization.
- The company holds 12 lakh liters of ENA and the rest is ethanol derived from B-Heavy.
- Ethanol prices may increase due to rational increases in cane prices by the UP government.
- The sugar production estimate for the upcoming season (SSY '24) is expected to be around 29 million tons.
- The major drop in sugar production is anticipated in Maharashtra and Karnataka, while Uttar Pradesh (UP) may see a marginal increase.
- Sugar prices are currently around INR 38.50 per kg, and while prices may soften during peak crushing times, the average price for the year is expected to remain firm.
- The reduction of GST on molasses from 28% to 5% will benefit buyers of molasses but won't significantly impact the company.
- The company does not plan to launch its own country liquor brand beyond fulfilling its levy obligations.
- Crushing for the upcoming season is expected to start in late October or early November.
- The company is vigilant about controlling pest infestations in the sugarcane crop, and the current season is showing negligible infestations.
- The company is exploring the possibility of diverting cane juice into ethanol, but this decision will be made in the coming months.
- Recovery for the previous season was 11.02%, and the year before that was 11.48%.
- The company is targeting an 8%-10% increase in sugar production for the upcoming season, aiming for over 45 lakh tons.
- Country liquor sales have been strong in the first half of the financial year, and the company intends to maintain this run rate to fulfill levy obligations.
- The company may have to book a potential INR 20 crore impact in the next quarter if it materializes.