E.I.D.-Parry’s consolidated profit for the June quarter dropped 42.5% to ₹141.60 crore despite a slight rise in revenue. The company faced pressure from rising operational expenses and underperformance in its sugar and distillery segments. Investors may track how the company manages costs and its subsidiary operations in the coming quarters.
E.I.D.-Parry (India) Ltd reported a 42.5% decline in its consolidated profit for the June quarter, reaching ₹141.60 crore compared to ₹246.28 crore in the same period last year. While the Murugappa Group company achieved a marginal increase in revenue, rising operational costs and specific segment challenges weighed heavily on the bottom line.
Consolidated revenue from operations grew by 3.4% to reach ₹9,017.52 crore, up from ₹8,719.75 crore a year ago. However, this revenue growth was outpaced by a 5.3% increase in total expenses, which rose to ₹8,624.59 crore. This gap between rising costs and revenue resulted in the company’s EBITDA margin contracting to 8.3%, down from 9.2% in the previous year. The consolidated EBITDA itself saw a decline to ₹750.6 crore.
Performance across business segments remained mixed. The crop protection business emerged as a strong performer, with revenue increasing to ₹1,250.76 crore and segment results improving to ₹170.15 crore. The nutrient and allied business, which is the largest revenue contributor, saw a 9.5% revenue rise to ₹6,951.03 crore, though segment profitability declined compared to the same period last year.
In contrast, the sugar business struggled significantly, reporting a sharp revenue decline to ₹475 crore from ₹1,258.34 crore previously. This segment reported a pre-tax and interest loss of ₹44.83 crore. Other areas also faced difficulties, with revenue falling in the co-generation and consumer products segments, while the distillery business also impacted overall profitability.
A significant factor contributing to the financial pressure was a ₹19 crore impairment charge related to the company’s subsidiary, Parry Sugars Refinery India Private Limited (PSRIPL). The standalone business reported a loss of ₹89 crore, reflecting the current operational hurdles. The impairment charge and closure costs associated with the subsidiary have been a point of concern for financial flexibility.
Looking ahead, investors may focus on the company's ability to control rising operational expenses and improve margins across the sugar and distillery segments. The performance of the crop protection vertical, which has shown resilience, will be important to track as it helps offset weaker parts of the business. Additionally, updates regarding the resolution of issues within the subsidiary will be a key monitorable for stakeholders.