Avadh Sugar & Energy Reported Rs. 760 Crore Income In Q4, Recommends Dividend Of Rs. 10

Avadh Sugar & Energy Limited (ASEL), a company under the KK Birla Group has announced the results of the March quarter. In Q4FY22, the company's total income stood at Rs. 760 crore, and PAT stood at Rs. 51 crore. Additionally, the Board has recommended a dividend of Rs. 10 per equity share (100% of FV of Rs. 10 per equity share).

Avadh Sugar & Energy Limited (ASEL)'s total Ethanol capacity has reached 325 KLPD in 2022, which is significant growth, and Ethanol dispatched at 824 lakh litres, which grew by 24% YoY. The company's sugar production reached 52.64 lakh qtls, sales stood at 62.09 lakh qtls and closing inventory was at 29.07 lakh qtls in the quarter. Its sugar realization for FY22 has been reported to be at Rs. 3,390 per quintal as against Rs. 3,185 per quintal in FY21.

Till last traded, the company's share price stood at Rs. 609.90, falling by 6.49%. The Indian stock markets are observing a downward trend at present due to interest rate hikes by the central bank and major FPI outflows from equities. ASEL is also experiencing a drop in the stock prices, however, the company is confident about its growth in the long term.

Commenting on the results, Mr. C.S. Nopany, Co-Chairperson, Avadh Sugar & Energy Ltd stated, "Indian sugar industry witnessed various tailwinds, elevating Indian sugar millers to a strong position globally. The change in global and domestic market dynamics enabled domestic sugar millers to achieve healthy growth. Indian sugar exports played a pivotal role to strengthen sugar realizations in the domestic market. The thrust towards ethanol continues to reduce cyclicality in the sugar sector. Indian ethanol demand has a huge gap to fill which will continue CAPEX cycle in the sugar industry, and with the introduction of flexi fuel vehicles, the ethanol demand can reach up to 4,000 crore litres in the next 5 years."

"At Avadh Sugar & Energy Limited, the recently enhanced Ethanol capacity will improve profitability. The generated free cash flow was utilized towards strengthening the balance sheet and repaying outside liabilities. The persistence towards sustainable growth will enable your company to create value for all stakeholders," Nopany added.