The shares of this sugar manufacturing company gained up to 6 percent after the company’s net profit and revenue increased by 52 percent and 22 percent YoY respectively in the third quarter result.
With a market capitalization of Rs 371.45 crore, the shares of Ponni Sugars (Erode) Ltd were trading at Rs 432.00 per share, increasing around 5.74 percent as compared to the previous closing price of Rs 408.55 apiece.
Looking into the company’s Performance, Ponni Sugars (Erode) Ltd’s revenue decreased by 1 percent on a quarter-on-quarter basis from Rs. 128 crores in Q2FY24 to Rs. 126.47 crores in Q3 FY24. Further, revenue increased by 24 percent year on year from Rs. 102 crore in Q3FY23 to Rs.126.47 crore in Q3FY24.
Ponni Sugars (Erode) Ltd’s net profit decreased by 22 percent on a quarter-on-quarter basis from Rs. 15 crores in Q2FY24 to Rs. 11.7 crores in Q3FY24. Further, net profit increased by 53 percent year on year from Rs. 7 crores in Q3FY23 to Rs.11.7 crores in Q3FY24.
The business completed phase 1 of the Energy Efficiency Project with a capital cost of Rs 12 crore. Ponni has also finished Phase 2 of the project, which has a budget of Rs 5 crore. This would be done by November 23. These projects are entirely funded by internal accruals.
In June 2019, the firm was one of the first to propose a 45 KLPD distillery-cum-ethanol plant and receive interest subvention funding for it. B-heavy molasses and sugarcane juice are increasingly used to produce ethanol, as opposed to C-molasses, which were formerly used exclusively.
Ponni Sugars (Erode) Ltd. reported return ratios in the recent financial year with a return on equity (ROE) of 18.8 percent and a return on capital employed (ROCE) of 14.4 percent.
Ponni Sugars (Erode) Ltd’s recent shareholding pattern, The Promoters of the company own 42.36 percent while Retail shareholders own a 34.74 percent stake in the company and Foreign Institutional Investors own a 22.85 percent stake.
Ponni Sugars (Erode) Limited is a sugar manufacturer. It is associated with Seshasayee Paper and Boards Limited. It operates a sugar mill in Erode (Tamil Nadu) with the ability to crush 3500 tons of sugarcane per day and produce 19 MW of power.
Written by:- Abhishek Singh
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