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Earnings Call Transcript

Zuari Industries Earnings Call Transcript: Key Takeaways

Zuari reports a 22% revenue jump driven by sugar volumes, but higher input costs and sugar cane prices (SAP) squeezed standalone EBITDA margins to 5.2%.

Highlights
Revenue growth22% consolidated YoY growth driven by sugar and real estate segments.
MarginsPressure from sugar cane price hikes; ethanol margins remain static.
Order book₹6,000 Cr real estate order book; asset-light DM model scaling.
Demand visibilityPositive sugar price outlook; high demand for Dubai residential projects.
Management confidenceBalanced, focused on asset-light real estate and debt deleveraging targets.

Growth

Consolidated revenue grew 22% YoY; sugar sales rose 29% via higher quotas, despite margin pressure from 8% SAP hike.

Outlook

Management expects ₹900 Cr profit repatriation from Dubai by end of FY27, targeting ₹10,000 Cr GDV in real estate.

Risks

Higher sugar cane prices and potential regulatory changes in ethanol blending remain primary margin triggers.

Last quarter's promises, checked

Delivered

  • Guided Dubai BCC by May → Received BCC 21 May (= BEAT)
  • Guided 100% Dubai sales → 100% sold out (= BEAT)
  • Guided sugar capacity optimization → 101.7% utilization (= BEAT)

Partly delivered

  • Guided ethanol price revision → Long overdue, industry still waiting (= PARTIAL)

Missed

  • Guided deleveraging every quarter → Debt remained at ₹1,900 Cr (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: ZUARIIND. Summary written with AI assistance from the document.

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Zuari Industries Ltd: key numbers

Share price
₹290.20
Market cap
₹864.2 Cr
Revenue (annual)
₹1,045 Cr
Net profit (annual)
₹108.0 Cr
P/E (TTM)
8.0×Sector 29.0×
Promoter holding
56.71%+0.00% QoQ
FII holding
1.10%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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