EID Parry Shares Dropped Over 4% After Release of Q2 FY25 Results

E.I.D Parry India’s share price fell by 4.4% on Monday, November 18, 2024, reaching an intraday low of ₹748 per share on the BSE. This decline in the stock price can be attributed to the company reporting a significant 32% year-on-year drop in its profit for Q2 FY25. The selling pressure intensified following the announcement of these weaker-than-expected earnings, prompting investors to react negatively to the results.

By 10:36 AM, E.I.D Parry shares were trading at ₹760.6, down 2.85% from the previous session. In comparison, the broader market showed a milder downturn, with the BSE Sensex falling by 0.59%, to 77,121.15. Despite the drop in its share price, E.I.D Parry’s market capitalization stood at ₹13,505.76 crore. The stock’s 52-week high was recorded at ₹879.95, while its 52-week low was ₹476.3, reflecting the volatility in the stock over the past year.

Q2 FY25 Financial Results: Decline in Profit

E.I.D Parry, the sugar manufacturer, reported its financial results for the September quarter after market hours on Thursday. The company’s consolidated net profit for Q2 FY25 declined by 32% on a year-on-year basis, totalling ₹306 crore, compared to ₹452.27 crore in the same period last year. This significant profit dip has raised concerns among investors, contributing to the downward movement in its stock price.

Revenue Growth and Margin Pressure

Despite the drop in profit, E.I.D Parry saw a modest 3% increase in its revenue from operations, which rose to ₹9,330 crore in Q2 FY25, compared to ₹9,059 crore in Q2 FY24. However, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹972 crore, lower than the ₹1,057 crore reported in the same quarter last year. The EBITDA margin also contracted, standing at 10.4% compared to 11.7% in Q2 FY24, reflecting pressure on profitability.

Commenting on the financial performance, company Whole-Time Director and Chief Executive Officer Muthiah Murugappan said, “The standalone profit of the sugar segment was lower in Q2 2024-25 as compared to the corresponding quarter of the previous year on account of lower cane volume, a drop in recovery from cane, higher input costs in distillery segment and lower sales volume in sugar on account of lower release quota.” 

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