Magadh Sugar & Energy's PAT Grew 50% In Q4, Board Recommends Dividend Of Rs. 6.50

Magadh Sugar & Energy Limited has announced its quarterly report of Q4, FY22, stating the company's total income stood at Rs. 344 crores, EBITDA stood at Rs. 62 crores by increasing 17% YoY, and PAT stood at Rs. 33 crores growing significantly by 50% YoY. In FY22, the company's total income stood at Rs. 998 crores, EBITDA was reported at Rs. 127 crores growing 9% YoY, and PAT was reported at Rs. 46 crores increasing 70% YoY.

Sugar production of the company stood at 15.92 lakh qtls, sales at 23.74 lakh qtls, and closing inventory at 11.21 lakh qtls (as on Mar 31, 2022). Its Sugar Realization for FY22 was Rs. 3,507/- per quintal as against Rs. 3,281/- per quintal in FY21. The company's ethanol production has been reported at 254 lakh litres with a growth of 43% YoY.

Magadh Sugar & Energy Limited's total Ethanol capacity increased from 80 KLPD to 150 KLPD in FY22, and its long-term issuer rating by India Ratings and Research has upgraded to "IND A" with a Stable Outlook. Additionally, the Board has recommended a dividend of Rs. 6.50 per equity share (65% of FV of Rs. 10 per equity share). According to NSE data, till last traded today, the company's share price stood at Rs. 287.40 falling by 0.98%.

Commenting on the results, Mr. C.S. Nopany, Chairperson, Magadh Sugar & Energy Ltd stated, "Indian Sugar Industry is in the midst of a long-term growth trajectory. Strong export demand and thrust toward ethanol are driving the domestic sugar market to deliver healthy growth. The current sugar season is expected to witness a healthy crop, thus enabling India to continue to cater to export demand. However, in the state of Bihar, unseasonal rainfall and high-water logging in the fields resulted in lower yield and dented recovery, during the current sugar season. The Government of India continues its thrust toward ethanol to reduce carbon emissions and move towards green energy. The recent focus on Flexi fuel engines is envisaged to further add towards ethanol demand in India."

Additionally, Nopany mentioned, "The recently expanded Ethanol capacity will drive the growth for the company going forward. With a focus on strengthening the balance sheet. Your company has reduced outside liabilities substantially and liquidated inventories during this fiscal. Current fiscal has given the company to adopt necessary steps and thus enable the future endeavors."