Avadh Sugar & Energy Limited — Updates, 12-11-2024: Press Release

**Financial Highlights:**

In Q2FY25, Avadh Sugar & Energy Limited reported total income of ₹634 Cr, down from ₹799 Cr in Q2FY24. EBITDA decreased to ₹36 Cr from ₹78 Cr, while PAT fell sharply to ₹1 Cr compared to ₹29 Cr the previous year. For H1FY25, total income was ₹1,343 Cr, a decline from ₹1,481 Cr in H1FY24. EBITDA was ₹94 Cr, down from ₹151 Cr, and PAT decreased to ₹10 Cr from ₹51 Cr.

**Strategic Initiatives and Growth Drivers:**

The company expressed cautious optimism for SS2024-25 amid a subdued ethanol policy by the government. This policy has restricted sugar diversion into ethanol due to concerns over domestic sugar shortages.

**Business Developments:**

Avadh Sugar operates four sugar mills with a combined capacity of 31,800 TCD and two distilleries with a total ethanol capacity of 325 KLPD.

**Market Position and Competitive Advantage:**

Mr. C.S. Nopany highlighted the resilience of their business model amid rising production costs and stagnant ethanol prices, emphasizing the need for timely policy interventions.

**Investor Implications:**

Investors should monitor the evolving policy landscape closely, as these changes will be critical for the company's profitability and operational sustainability, suggesting a need for ongoing assessment of market conditions and government support strategies.