Dalmia Bharat Sugar posted excellent numbers for Q3FY17. The company’s total income rose 74% (YoY) at Rs.482 crore and despite a 58% rise in operating costs, its EBITDA came in healthy at Rs.112 crore, up by a whopping 165%. Margins jumped up from 15% to 23%. Net profit was up 181% at Rs.48 crore.  The jump in the topline was thanks to the higher sugar price realization  and a 54% rise in sugar sales volumes.

Mr.Tulsian had said in our Market Whispers column, “The company sold 11.70 lakh bags of Sugar in Q3 at over Rs. 38 per kg., with company having crushed 43% higher sugar cane in Q3 (YoY), of 13.32 lakh tonnes, thus firing on all sectors, with PBT rising to Rs.80 crores from Rs. 48 crores, QoQ. Giving more details, Mr.Tulsian said, “Company is having 2 sugar mills in Maharashtra with total capacity of 10,000 TCD and 3 mills in U.P. of 22,500 TCD. We gave buy call on the stock in Stock Recommendation section on 30-12-16 at Rs.129 and in this (Market Whisper) section on 16-1-17 at Rs.160, with both targets seen having met and these Q3 numbers are now making it a buy again. Maharashtra has already seen sugar prices crossing Rs. 40 per kg., which will see moving up further, improving margins of UP based sugar mills, due to higher production than last year.”