Godavari Biorefineries Q2 Results: Net Loss Increases to ₹75 Crore in Q2

Godavari Biorefineries' shares dropped 4.42% to ₹293.80 after the company reported a consolidated net loss of ₹74.99 crore in Q2 FY25, compared to a net loss of ₹65.14 crore in Q2 FY24. The company's revenue from operations fell by 33.73% year-on-year to ₹320.05 crore for the quarter ended 30 September 2024. Additionally, it recorded a pre-tax loss of ₹64.11 crore in Q2 FY25, marginally improving from a pre-tax loss of ₹65.14 crore in the same quarter of the previous year.

Godavari Biorefineries Q2 Results Highlights

    • Revenue: Decrease of 33.73% YoY to ₹320.05 crore.
    • Net Loss: Increased to ₹74.99 crore from net loss of ₹65.14 crore posted in Q2 FY24.
    • EBITDA: ₹31.53 crore against an EBITDA loss of ₹30.61 crore recorded in Q2 FY24.
    • Stock Market: Slipped 4.42% to ₹293.80.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Godavari Biorefineries Management Commentary

Commenting on the Results, Samir Somaiya, CMD said, "Firstly, I would like to extend my heartfelt thanks to all our new shareholders for placing their trust in us and contributing to the success of our Godavari Biorefineries IPO. We are committed to building a sustainable business and creating long-term value for all our stakeholders. As you may know, our business is subject to seasonality due to the sugarcane harvesting period, which typically runs from November to March."

"A large portion of the IPO proceeds will be utilized to repay debt amounting to ₹240 crore, enhancing our balance sheet strength and generating sufficient free cash flow to support further expansion within our biobased chemicals segment. This initiative will also improve profitability through interest cost savings. We remain optimistic about the growth prospects of our bio-based chemicals segment and the green energy transition, and we are focused on expanding in these areas."

"Consequently, our performance in the first half of the financial year tends to be weaker compared to the second half. With the government's reinstatement of the Ethanol Blending Program from sugarcane juice, GBL is poised to leverage its enhanced capacity, and we anticipate seeing its impact starting from Q3 FY25 onwards," Somaiya added.

Stock Market Reaction

Godavari Biorefinerie share price fell by 4.42% to ₹293.80 after the company reported a consolidated net loss of ₹74.99 crore in Q2 FY25, up from a net loss of ₹65.14 crore in Q2 FY24. 

About Godavari Biorefineries

Godavari Biorefineries stands as a leading ethanol producer and a trailblazer in ethanol-based chemical manufacturing in India. The company boasts a diverse product range, including bio-based chemicals, sugar, rectified spirits, ethanol, various alcohol grades, and power. Notably, it is the sole company in India offering an extensive portfolio of bio-based products such as MPO, natural 1,3-butylene glycol, ethyl vinyl ether, and other bio-based chemicals.