Zuari Industries Limited, the apex company of the Adventz Group, declared its financial results for the quarter ended 30 June 2024. The standalone revenue from operations stood at Rs. 214.5 crore, up 30% compared to Q1 FY24. The standalone operating EBITDA of the company increased to Rs. 23.5 crore, up 159% compared to Q1 FY24.

The company registered a significant improvement operational performance in its SPE division, with a major increase in sugar recovery to 12.47% for the quarter compared to 9.30% in Q1 FY24 and higher ethanol production at 8,965 KL compared 6,570 KL in Q1 FY24. Sugar Sales are higher by 75,000 quintals and Ethanol Sales are higher by 2600 KL compared to Q1 FY24. On the real estate side, performance is muted due to delay in land monetization activities during the quarter.

Consolidated Revenue for Q1 FY25 stood at Rs. 242 crore, lower by 14.8% compared to Q1 FY24, while consolidated Profit Before Tax (PBT) before exceptional items stood at Rs. (34.28) crore compared to Rs. (45.58) crore for Q1 FY24.

The company for Q1 FY25, posted a consolidated Profit After Tax (PAT) of Rs. (33.60) crore compared Rs. (47.54) crore in Q1 FY24. The Investment Services Segment (Zuari Finserv and Zuari Insurance Broking) of the company reported at increase in EBITDA to Rs. 3.58 crore, registering a growth of 99.7% compared to Q1 FY24. The company has been able to reduce the borrowing costs by 20 bps (Q-o-Q).

The construction of the first flagship 180 KLPD grain-based distillery under ZEBPL (a Joint Venture) is in full swing and is expected to be commissioned by mid-2025.

Commenting on the Results, Athar Shahab, Managing Director, Zuari Industries Ltd, said: “During this quarter, the company has been able to sustain and improve its operational performance. Our Sugar, Power and Ethanol business has registered significant improvement in operational metrics.

“Despite facing headwinds on sugar cane yield and availability, the Company has been able to register higher sugar recovery, higher sugar sales and higher ethanol production. Our subsidiaries and JVs are on growth trajectory, and we continue to strategically evaluate them based on their operational and financial performance.During the quarter, our strategic investments has done exceptionally well.

“Our capital allocation focus remains on growing our key operating businesses which includes SPE, Real Estate and Bioenergy. We are on track to complete the Repair and Maintenance (R&M) of SPE Division in a timely manner, and we are accelerating our efforts to monetize land assets. We continue to deleverage and refinance high-cost borrowings with cheaper sources of funds.”