Now Reading: EID Parry Q1 net profit falls 42% on higher costs
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EID Parry Q1 net profit falls 42% on higher costs
EID Parry, part of the Murugappa Group, reported a 42% drop in consolidated net profit for the June quarter (Q1FY27) to Rs 142 crore, down from Rs 246 crore a year ago.…
The Story in Brief
EID Parry, part of the Murugappa Group, reported a 42% drop in consolidated net profit for the June quarter (Q1FY27) to Rs 142 crore, down from Rs 246 crore a year ago. Consolidated revenue rose marginally by 3% to Rs 9,017 crore. The sugar segment's revenue grew 18% to Rs 410 crore on higher sales volumes, but higher operational costs and one-time expenses offset the gains.
On a standalone basis, the sugar company posted a net loss of Rs 89 crore, compared to a loss of Rs 28 crore last year, including an impairment of Rs 19 crore in a subsidiary. The distillery segment saw a 14% revenue decline due to lower ENA offtake in Tamil Nadu. The Consumer Products Group revenue fell sharply to Rs 94 crore from Rs 188 crore, though operating margins improved due to a recalibrated business model.
The Indian Opinion
The narrative of a sugar sector in trouble is too simple. EID Parry's sugar revenue grew 18% on higher volumes, and the drop in profit came from one-time expenses and rising operational costs, not a demand collapse. The distillery and CPG segments did struggle, but the company is deliberately trading revenue for margins in CPG. The real test is whether the cost pressures ease in coming quarters and if the margin-focused strategy holds. Can the sugar segment maintain volume growth while costs stabilise?
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
