Sugar Manufacturing company’s shares hit 20% upper circuit to an intraday high price of ₹94.08 per share on Thursday after the company reported 478% growth in net profit in Q3 results.
Davangere Sugar Company Ltd is a micro-cap stock with a market capitalization of ₹885 crores.
Compared to the previous quarter, Davangere Sugar Company Ltd witnessed a substantial 190% increase in total revenue, soaring from ₹26.92 crores in Q2FY24 to ₹78.31 crores in Q3FY24. Concurrently, the net profit experienced a remarkable surge of 478%, escalating from ₹0.97 crores to ₹5.61 crores, as indicated in the company’s exchange filing.
However, on a year-on-year basis, the company faced a 17% decline in total revenue, dropping from ₹94.71 crore in Q3FY23 to ₹78.31 crore in Q3FY24. Similarly, during the corresponding period, the net profit exhibited a noteworthy growth of 143%, rising from ₹2.30 crore to ₹5.61 crore.
Additionally, the company board approved the commissioning of the CO2 Plant. To Convert the waste molasses fermentation into liquefied Carbon dioxide and dry ice for an investment of ₹ 3 crores.
Davangere Sugar Company Ltd shares have gained 10% in the last month and 25% in a year.
Davangere Sugar manufactures sugar from sugarcane and generates electricity through co-generation. The company has a manufacturing operation in Karnataka with a sugar-crushing capacity of 4750 TCD.
Recently, The company’s board of directors has approved an expansion of ethanol production capacity from 65 KLPD (Kilo Litre Per Day) to 110 KLPD, for which the company would invest 54 crores. The company’s existing capacity utilization is at 99.96%.
Written by Omkar Chitnis
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