KCP Sugars announces Q1 earnings; trading volume spurts by 90%

On July 19, KCP Sugars & Industries which engaged in the manufacturing of Sugar as well as associated product announced its financial results for the June quarter. Following the announcement, the company’s shares surged by over 17% in the intraday session today.

At the time of writing this article, the shares of the company are trading at Rs 29.07, which is an increase of Rs 4.27 from the previous day’s closing price of Rs 24.80 on the BSE. Furthermore, the share price also reached the upper circuit limit of Rs 29.76 during today’s intraday session. 

Let’s briefly discuss the quarterly results that the company posted yesterday. In Q1 FY24, the company witnessed a remarkable YoY increase in annual revenue, soaring from Rs 74 Crore to Rs 96 Crore, marking a growth of 30.08%. The operating profit of the company stands at Rs 11 Crore, with an operating profit margin of 12%. Additionally, the net profit amounted to Rs 31 Crore. 

On a sequential basis, the company’s revenue saw a significant surge of 62.7%, climbing from Rs 59 Crore to Rs 96 Crore. Moreover, the operating profit doubled compared to the last quarter of FY23. During the last quarter, the company reported a net loss of Rs 8 Crore; however, in the June quarter, the company not only managed to turn a profit but achieved an impressive Rs 31 Crore in profit. 

The company’s return on capital employed (ROCE) and return on equity (ROE) are at 12.5% and 12.6%, respectively. The Book value of the company is Rs 32.8, whereas the Price to book value is 0.88 times which makes this a value pick. Furthermore, the price to earnings is only 3.85 times. 

The stock’s 52-week high and low stand at Rs 34.20 and Rs 20.55, respectively. The current market capitalization of the company is Rs 330.52 Crore. 

In just one week, the shares of the company have delivered a return of around 20%, whereas it has given an impressive return of 85% in the last three years. 

Regarding ownership, the promoters of the company possess 40.59% of the company’s shares. Whereas both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) do not hold any stakes in the company. The remaining portion, which accounts for 59.40%, is owned by public investors. 

KCP Sugar and Industries is an India-based sugar manufacturing company. The Company is engaged in the manufacturing of sugar, industrial alcohol, ethanol, bio-fertilizers, carbon dioxide, calcium lactate, and incidental cogeneration power. Its segments include Sugar, Chemicals, Power & Fuel, Engineering, and Others. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.