EIDPARRY - E.I.D. Parry (India) Ltd. Share Price

Question: "Considering the issues pertaining to sugar and ethanol, where the mix is changing from sugar to grain. So how do we approach this challenge? Do we anticipate oversupply of sugar or underutilization of our ethanol capacity?"
Answer: Yes, the industry faces a challenge of overall higher ethanol capacities, particularly in grain-based vs. molasses-based. The lower allocations in Karnataka strain capacity utilization. Some volumes will shift to ENA, but a policy intervention is needed to alleviate excess capacity. The government is aware of the situation and likely to address it.

Question: "Do we see the consumer business as our leading growth segment going ahead?"
Answer: The second quarter has been subdued due to lower release quotas and lower prices of dal, which have fallen significantly. However, we expect the consumer business to grow as larger release quotas are anticipated in upcoming quarters, with prices stabilizing and possibly increasing.

Question: "What allocation have we got for ethanol blending, and will we be able to utilize our capacity to the full?"
Answer: We received about 69% allocation from the OMC bidding. We engage with private players, ensuring an expected capacity utilization above 90%. Our annual capacity is around 18 crore liters, and we're on track to produce approximately 17 crore liters.

Question: "What is our break-even point for refinery operations based on expected white premiums?"
Answer: For refineries, we typically need white premiums between $115 to $120 per ton to break even. Current market oversupply has depressed these premiums, leading to increased competition from low-quality imports, affecting our margins.

Question: "Has the additional FRP price implemented in Karnataka affected our crushing expectations for FY '26?"
Answer: The government of Karnataka recently mandated an additional INR 50 per ton over the FRP. This adjustment was a result of farmer agitation and will impact the industry. Last year, we crushed about 21-22 lakh tons, and we aim to exceed that with this year's crush.

Question: "Can you elaborate on the channel consolidation in the Pulses segment?"
Answer: We are consolidating channels, merging sweeteners and non-sweeteners into a unified sales team. This may lead to short-term volume corrections, but once completed, we expect to return to normal volumes by the end of the fiscal year.

Question: "What is the revenue distribution for sweetener versus non-sweetener in our consumer product segment?"
Answer: For the recent quarter, approximately 35% to 40% of revenue came from non-sweetener products, with the remainder from sweeteners. This distribution demonstrates our gradual shift towards diversifying our product offerings.

Question: "What led to the sharp turnaround in the nutraceuticals segment, and is it sustainable?"
Answer: The turnaround was aided by a one-time insurance claim due to a facility damage incident. While we expect to maintain current levels, the spike won't recur. We've strengthened operations following certification obstacles and anticipate growth through new product launches.

Question: "When do you expect price stabilization in the consumer products segment?"
Answer: We forecast some pricing improvements in Q3, especially for pulses. The current crop is lower than last year's, which should help lift prices. However, the overall market dynamics will need to be monitored closely.

Question: "Are there plans to grow in the grain or multi-feed distillery base given recent trends?"
Answer: Currently, there's no plan for capacity addition or conversion to multi-feed distilleries due to significant existing overcapacity in the industry. We aim to maintain operations without incurring additional capital expenditure until a clearer policy framework emerges.