Sukhjit Starch & Chemicals Ltd, an agro‐ processing company that specializes in the production of starch and its derivatives, has announced its unaudited financial results for the quarter and half year ended 30th September 2024.

The company has posted net profit of Rs. 12.63 crore in Q2 FY25 as compared to Rs. 13.66 crore in Q2 FY24. PAT was Rs. 13.61 crore in Q1 FY25. Revenue from Operations in Q2 FY25 was Rs. 363.87 crore as compared to Rs. 320.28 crore in Q2 FY24 and Rs. 389.83 crore in Q1 FY25 respectively.

Highlights of H1 / Q2 FY25 Results

• HY1FY25 Revenue from operations stood at Rs. 753.70 crore, against Rs. 642.46 crore in thecorresponding previous half year, showing a growth of about 17%.

• Q2FY25 Revenue from operations stood at Rs. 363.87 crore, against Rs. 320.28 crore in the corresponding previous Quarter, with a growth of over 13%.

• EBITDA stood at Rs. 64.15 crore in HY1FY25 as against Rs. 63.40 crore in HY1FY24, with margin decline primarily due to volatile maize prices, expected to stabilize in the coming quarters.

• Sales in Q2 are typically lower than in Q1 due to seasonal factors affecting the sales of one of our higher‐value products.

• Announced stock split/ sub‐division of the existing equity shares of the Company having face value of Rs 10 each to equity shares having face value of Rs 5 each.

Commenting on the Results, K.K.Sardana, Managing Director, said, "We are pleased to share our financial and business performance for Q2 and H1 FY25. In the quarter ended September 2024, our company has demonstrated a decent performance, driven by the increasing demand for maize starch and its derivatives. The rising demand of liquid sweetener in the FMCG sector, coupled with the growing need in the pharmaceutical sector, has significantly contributed to the expansion of our market. Additionally, as India embraces sustainable and eco-friendly solutions, maize starch is emerging as a leading renewable and biodegradable material.

“There is reduction in the margins due to pressure from rising/volatile raw material prices owing to changing demand for maize from ethanol producers. We anticipate that raw material prices will stabilize as current volatility subsides in the coming quarters. Additionally, there is typically a 3 to 6‐month lag before increased raw material costs are reflected in finished goods pricing.

“The expansion at manufacturing facilities are progressing as planned, with partial commissioning achieved during the current quarter ending December 31, 2024 and the rest will be completed in Q4 FY25.”