MultiBagger sugar stock falls 8% to 4 months low as Q1 net profit plunged 93% yoy | Einsmark news

Shares of Triveni Engineering & Industries dropped 8% in the Intraday trade on Wednesday 30 July, with a 4-month low of £ 339 after the company reported a poor set of numbers for the June quarter, with a consolidated net profit that dropped 93.2% years at £ The reporting quarter has been sold. In the same period last year, the company reported a net profit of £ 31 crore. The company said the profitability of the sugar business, despite higher volumes and realization, was lower than last year due to higher production costs. The turnover of the sugar industry jumped 17% to £ 1,169.6 crore in Q1FY26, and the average realization per MT improved slightly by 3.6% yoy to £ 40,421. However, the segment gain dropped to £ 7.6 crore of £ 36.5 crore in Q1FY25, a drop of 80%, due to the higher cost of sugar sold in the first quarter, which could not be counteracted by increased sugar realization prices. The cost of sugar sold during the term relates to SS 2024-25 (produced until March 31, 2025) and was influenced by a lower gross recovery, the company said during its filing. Sugar prices were on a falling trend from January 2025, but became bullish from the end of January to February, which achieved profits until March end with interrupted volatility. However, prices began to fall meaningfully from April, and achieved lows of the month in early July. In the future, global sugar prices are expected to remain under pressure in the short term due to generous global supply and favorable weather in important sugar -producing regions such as Brazil and India. According to the latest report from S&P Global, the global sugar balance state for 2024-25 points is to a deficit of 4.36 million tons. For the season 2025-26, the outlook remains largely balanced, with a surplus of 2.89 million tonnes due to better crops in India, Thailand and Brazil. Meanwhile, profitability in the power transfer business has been adversely affected by lower turnover, expenses incurred to maintain higher staff levels to meet increased activities, and higher depreciation on capitalization related to the ongoing CapeX program. However, the company reported a 15% increase in sequence bookings and a record closure book of £ 423 crore, by 38% higher than the corresponding previous period. The Engineering Industry Closing Book (including PTB) stood at £ 1.975 crore, higher 32% than in the same quarter last year. The stock now has 27% lower than the recent highlights, and the share has had a falling trend since early June, which further accelerated in contemporary trade, which led to 27% of the recent peak of £ 468 recorded at the end of May. From its peak of £ 536, made in December 2024, the share is now trading 36% lower. However, if you look at the long term, the stock is still 1.128% higher than the lows of 2020 and has finished in the green for the last four calendar years. Triveni is one of the largest integrated sugar producers in the country, with eight sugar units in Uttar Pradesh, of which seven FSSC 22000 is certified. Two units (Chandanpur & Khatauli) received bonsuco certification. Bonsucro certification is a global recognized standard for sustainable sugarcane production, according to the company’s Q1FY26 earnings report. Disclaimer: The views and recommendations given in this article are those of individual analysts. This does not represent the views of coin. We advise investors to check with certified experts before making investment decisions.