Dhampur Sugar Mills Limited — PPTs, 16-05-2025: Investor Presentation

1. Financial Highlights:

Dhampur Sugar Mills reported consolidated revenue of Rs. 2655 Cr for FY25, slightly up from Rs. 2644 Cr in FY24. EBITDA declined to Rs. 187 Cr with margin compression to 7% from 11%. Profit before tax dropped to Rs. 75 Cr (7.2% margin) versus Rs. 191 Cr last year, and PAT fell to Rs. 52 Cr from Rs. 133 Cr. Quarterly revenue stood at Rs. 810 Cr (versus Rs. 667 Cr), with EBITDA margin improving to 12.7%. The balance sheet remains strong with total assets of Rs. 2384 Cr; long-term borrowings reduced to Rs. 143 Cr, short-term borrowings at Rs. 767 Cr, and cash & equivalents rose to Rs. 139 Cr.

2. Strategic Initiatives & Growth Drivers:

Two new tetra pack lines were commissioned, boosting potable spirits capacity by 10,000 cases/day. Higher ethanol prices for C-heavy molasses aided margin support. The company raised Rs. 450 Cr via commercial paper to fund working capital. Sugarcane crushing capacity and recovery ratios improved marginally, with ongoing focus on distillery and co-generation unit expansions to diversify revenue streams.

3. Business Developments:

No acquisitions reported. Potable spirits production scaled up significantly to 31.3 lakh cases, while ethanol sales dropped sharply to 694 lakh BL from 1232 lakh BL despite stable realizations. Power generation volumes decreased but realizations improved. The chemicals segment faced revenue and EBIT pressures, whereas sugar business showed stable revenue with improved realizations.

4. Market Position & Competitive Advantage:

Dhampur sustains a strong position with a diversified product portfolio spanning sugar, ethanol, power, chemicals, and potable spirits. Integrated UP-based manufacturing, cost efficiencies through zero liquid discharge distilleries, and bagasse-based power generation confer scale benefits. The potable spirits segment is gaining leadership with new packaging innovations fueling category expansion.

5. Investor Implications:

Earnings show mixed trends due to reduced ethanol volumes offset by higher sugar realizations and expanded potable spirits capacity. The robust balance sheet and multi-vertical exposure signal positive growth potential. Execution risks remain in ethanol sales recovery and chemical segment performance; investors should track volume trends and margin stability in core businesses.