Davangere Sugar Company Limited (BSE: 543267, NSE: DAVANGERE), a prominent name in sugar production and renewable energy, has unveiled its unaudited financial results for Q3 and the nine-month period ending December 31, 2024. The company reported significant growth across all key financial metrics, reflecting its strategic investments and sustainability-focused initiatives.
Q3 Financial Highlights: Surge in Profits and Revenues
For the third quarter, the company’s net profit skyrocketed by 428% quarter-over-quarter (QoQ), reaching ₹6.76 crore compared to ₹1.28 crore in the previous quarter. The revenue for Q3 surged 86% QoQ to ₹73.17 crore, highlighting a strong operational performance.
On a nine-month basis, the company reported a 40% year-over-year (YoY) increase in net profit, climbing to ₹1,076.14 lakh from ₹768.48 lakh in the corresponding period of the previous year. Total revenue for the nine months was ₹1,592.8 crore, underscoring the company’s ability to scale its operations effectively.
EBITDA for Q3 stood at ₹18.2 crore, marking a 14% YoY increase, which demonstrates the company’s operational efficiency amidst rising input costs and global challenges in the sugar sector.
Strategic Investments to Bolster Ethanol Production
In September 2024, Davangere Sugar Company announced a ₹400 crore rights issue, approved by its board, to expand ethanol production capacity. Ethanol, a sustainable and renewable energy source, has been a cornerstone of the company’s diversification strategy.
India’s ethanol sector has seen robust growth, with grain-based ethanol accounting for 51% of total production in FY25, up from 37% in FY24. Government support through schemes promoting grain-based ethanol production has fueled this sector’s expansion.
The company operates a state-of-the-art ethanol distillery with a production capacity of 65 KLPD (kilolitres per day), alongside a sugar plant with a 6,000 TCD (tonnes crushed per day) capacity and a 24.45 MW co-generation power plant.
Farmer Support and Sustainability Measures
Davangere Sugar Company has taken proactive measures to support sugarcane farmers, including:
- Providing subsidized seeds and agricultural inputs to improve crop productivity.
- Offering monetary aid and subsidies for sugarcane plantations.
- Promoting the cultivation of over 15,000 acres of sugarcane to ensure a stable raw material supply.
These efforts not only secure a consistent raw material pipeline but also create a positive social and economic impact on local communities.
Robust Infrastructure and Storage Capacity
The company has invested in robust infrastructure to streamline its operations. Its five sugar storage units, each with a capacity of 60,000 tonnes, ensure seamless distribution and efficient inventory management. This infrastructure allows Davangere Sugar Company to maintain high-quality standards while meeting market demands.
Regional Development and Long-term Vision
Since its establishment in 1970 in Kukkuwada, Karnataka, Davangere Sugar Company has played a pivotal role in regional development. By combining sugar production, ethanol manufacturing, and sustainable power generation, the company has become an integral part of the local economy while contributing to India’s renewable energy goals.
The management continues to prioritize innovation, farmer welfare, and sustainability, aiming to align the company’s growth trajectory with long-term environmental and economic objectives.
Key Financial Metrics at a Glance
| Metric | Q3 FY25 | Nine-Month FY25 | YoY Growth |
|---|---|---|---|
| Net Profit | ₹6.76 crore | ₹1,076.14 lakh | 40% |
| Revenue | ₹73.17 crore | ₹1,592.8 crore | – |
| EBITDA | ₹18.2 crore | – | 14% |
With its strong financial performance, strategic investments, and focus on sustainable practices, Davangere Sugar Company is well-positioned to capitalize on the growing demand for sugar, ethanol, and renewable energy.
