Fall in cane production in sugar season 2023-24, led by an uneven and inadequate monsoon in key cane-growing regions is set to reduce the quantum of sugar available in the domestic market.
In response, the government has restricted sugar exports, even as international prices are ruling high, and is closely monitoring monthly sugar stock.
The resultant increase in domestic sugar prices, as well as higher ethanol volume and realisations, will benefit integrated millers, partially offsetting the moderately higher cane cost. That said, lower domestic and export volume may dent operating profitability, more so for millers largely dependent on the sale of sugar.
This milieu throws up several questions: What will be the impact on the financial profiles of sugar mills, both integrated and non-integrated? Will players revise their capital expenditure (capex) plans?
For answers and more, Crisil Ratings is conducting a webinar on November 28, 2023, where our experts will discuss:
Demand-supply dynamics in the domestic and global sugar markets
Outlook on revenue and profitability of sugar millers
Impact on capex plans and key financial metrics
Credit outlook for millers rated by Crisil Ratings
The webinar will be followed by a panel discussion with industry experts, and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of Crisil. Any use of the same without written permission of Crisil is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
