Davangere Sugar Share: Shares of Davanagere Sugar Company Limited witnessed a spectacular rise of about 8 percent today on January 20. This stock closed at Rs 6.31 on BSE with a gain of 7.86 percent. The company recently announced strong results for the quarter and nine months ending December 31, 2024. The company’s net profit rose 20 per cent to ₹6.76 crore in the December quarter, compared to ₹5.61 crore in the same period a year ago. Additionally, there was a massive 428 per cent increase in profit from ₹1.28 crore in the September quarter (Q2FY25).
How were the results of Davangere Sugar?
Davanagere Sugar Company’s total income stood at ₹73.58 crore, compared to ₹78.83 crore in the same quarter a year ago. However, there was a significant increase on quarter-on-quarter basis, which is 85 percent more from ₹39.77 crore. EBITDA in the third quarter stood at ₹18.2 crore, up 14 per cent year-on-year. Total expenses also increased to ₹66.12 crore, from ₹37.98 crore in the September quarter.
Meanwhile, the company’s profit for the nine months ended December (9MFY25) stood at ₹9.85 crore, compared with ₹14.45 crore in the same period last year. Revenue also declined to ₹157.52 crore during this period, which was ₹222.9 crore in FY 2024.
In September 2024, Davangere Sugar Company announced plans for a rights issue of shares, which was approved by its board. The company aims to raise ₹400 crore through this rights issue. This amount will be used to increase ethanol production capacity and develop related infrastructure.
As part of its commitment to ensure stable raw material supply and community welfare, the company has undertaken sugarcane cultivation in an area of more than 15,000 acres. For this the company is providing subsidy and additional financial assistance to the farmers.
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