Kothari Sugars & Chemicals' Profit Down by 64.5% in FY25
By Ankur Chandra | Updated at: May 31, 2025 10:45 PM IST
CHENNAI, May 29, 2025 – Kothari Sugars and Chemicals Ltd. (NSE: KOTARISUG) has announced its financial results, showing a sharp decline in profitability for the financial year ended March 31, 2025. The reason cited was a significant fall in sugarcane availability.
Key Financial Highlights (₹ in lakh)
| Particulars | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | 31,001.58 | 50,272.88 | -38.3% |
| Total Income | 32,642.19 | 51,812.33 | -37.0% |
| EBITDA* (Estimated) | 3,499.69 | 5,970.81 | -41.4% |
| Profit Before Tax | 1,676.60 | 4,191.42 | -60.0% |
| Net Profit | 1,042.52 | 2,949.24 | -64.6% |
| Total Comprehensive Income | 1,081.92 | 2,921.23 | -63.0% |
| EPS (Basic & Diluted) | ₹1.26 | ₹3.56 | -64.6% |
*EBITDA = PBT + Depreciation + Finance Cost
Segment-Wise Performance
| Segment | Revenue (₹ lakh) | FY25 | FY24 | Change |
|---|---|---|---|---|
| Sugar | 18,493.16 | 31,044.68 | -40.4% | |
| Distillery | 10,640.76 | 11,412.07 | -6.8% | |
| Power | 4,601.23 | 12,996.63 | -64.6% | |
| Total | 33,735.15 | 55,453.38 | -39.2% |
Operational Setback and Exceptional Item
The company operated only its Kattur unit during the 2024–25 sugar season. It cited inadequate sugarcane availability in its command area for the loss of manufacturing due to lower rainfall and pest attacks.
Kothari Sugars also reported an exceptional income of ₹633.91 lakh due to a refund related to the reversal of a power provision.
Balance Sheet Overview
- Total Assets: ₹44,956.10 lakh (↓6.8% YoY)
- Net Worth: ₹28,930.27 lakh
- Total Liabilities: ₹16,025.83 lakh
- Cash & Equivalents: ₹8.81 lakh (vs ₹1,095.11 lakh in FY24)
As is evident, the company’s position has reduced significantly. The net cash from operations reduced to ₹5,245.40 lakh in FY25 from ₹15,580 lakh in FY24. The company reported negative investing cash flows of ₹2,773.48 lakh during the year.
Auditor’s Statement
The statutory auditors, M/s P. Chandrasekar LLP, issued an unmodified opinion on the financial statements, confirming compliance with Ind AS and regulatory standards.
Management Commentary
M. Silvester Goldwin, Wholetime Director, stated:
“Our FY25 performance was significantly impacted by external climatic challenges. The company continues to focus on cost control and maximizing throughput from available raw materials.”
Outlook
Although the company’s distillery operations remain strong, the company’s ability depends on the availability of sugarcane, which is seasonal. This dependency poses a significant risk to the company’s successful operations. Hence, the company aims to be cost-effective and may explore other alternatives to mitigate sugar segment exposure.
Kothari Sugars has not recommended any dividend for FY25.
About the Company:
Kothari Sugars & Chemicals Ltd is an Indian company that manufactures and generates sugar, alcohol and power. The company was established in 1961 and is headquartered in Tamil Nadu, India. It has a paid-up equity share capital of ₹8,288.86 lakh with shares listed on the NSE under the symbol KOTARISUG.
REF: https://nsearchives.nseindia.com/corporate/KOTARISUG_29052025140734_OutcomeofBoardMeeting29052025.pdf
